Good morning, and welcome to our rolling protection of the world economic system, the monetary markets, the eurozone and enterprise.
Retail gross sales within the UK staged a small restoration in June, rising 0.5% from the earlier month, when gross sales fell 1.4%, on account of a surge in folks going out as bars, pubs and eating places reopened indoors. The studying is barely higher than the 0.4% acquire predicted by economists.
The Workplace for Nationwide Statistics mentioned gross sales had been boosted by a 4.2% improve at meals shops, as folks purchased extra foods and drinks in the beginning of the Euro 2020 soccer match.
The Olympic Video games, additionally delayed from final 12 months, open in Tokyo at the moment. You may learn extra right here:
UK petrol and diesel gross sales additionally elevated in June, by 2.3%, the ONS mentioned, as folks travelled extra, however they continue to be 2.1% beneath their pre-coronavirus pandemic February 2020 ranges. Non-food shops reported a 1.7% drop in gross sales volumes, due to declines at furnishings shops and clothes outlets. Family items suffered their first decline that wasn’t pushed by lockdown for the reason that begin of the pandemic.
On-line purchases stay a lot larger than earlier than the pandemic, however have fallen again as extra folks go to bodily outlets. The proportion of gross sales on-line fell to 26.7% in June, from 28.4% in Could.
The image is brighter for the previous three months to June, when retail gross sales rose 12.2% from the earlier three months, pushed by a robust rebound in April when non-essential retailers had been allowed to reopen after the most recent coronavirus lockdown.
General, retail is in fairly good well being – gross sales in June had been 9% above pre-virus ranges.
This morning, we’re additionally getting the flash readings on the July business surveys from IHS Markit. Sara Johnson, govt director of world economics at Market, says:
Within the face of headwinds from the Delta variant of the Covid-19 virus, the worldwide financial growth is shifting ahead – albeit extra tentatively than a month in the past. Outlooks in superior nations with excessive vaccination charges reman shiny, however near-term prospects in rising and creating nations with low vaccination charges are murkier.
Asian inventory markets are blended after a risky week when merchants have been torn by hopes for the worldwide restoration and fears over the unfold of the Delta variant. Hong Kong’s Hold Seng has fallen 1.1%, Singapore’s Straits Occasions Index is down 0.2% and the Australian market is flat.
Michael Hewson, chief market analyst at CMC Markets UK, says:
The restoration from the Monday sell-off continued apace yesterday, with the FTSE-100 being the notable social gathering pooper … whereas the remainder of Europe closed larger for the third day in succession.
US markets, and specifically tech shares led the best way, with the Nasdaq 100 closing at a brand new file excessive, with the S&P 500 simply falling quick. This optimistic end ought to translate into a better European open regardless of a weaker Asia session, and with Japanese markets closed.
Yesterday’s European Central Financial institution assembly didn’t present a lot in the best way of pleasure with ECB President Christine Lagarde as soon as once more speaking rather a lot whereas saying little or no.
The brand new ahead steerage merely outlined that the ECB was more likely to be ultra-accommodative for a very long time to return, and if something was the equal of giving a reasonably battered outdated automobile a brand new paint job, and a fast engine tune-up. It appears nicer nevertheless it’s nonetheless the identical outdated banger beneath.
The Agenda
- 8.15am BST: France Markit Manufacturing/Providers/Composite PMI for July
- 8.30am BST: Germany Markit Manufacturing/Providers/Composite PMI for July
- 9am BST: Eurozone Markit Manufacturing/Providers/Composite PMI for July
- 9.30am BST: UK Markit Manufacturing/Providers/Composite PMI for July
- 2.45pm BST: US Markit Manufacturing/Providers/Composite PMI for July
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