UK in focus

June 13, 2017

A busier night for markets with several pieces of information set for release, while UK politics is still in the headlines.

With the UK parliament still to form a government, markets are watching political movements with interest. The political environment plays a critical role in market direction as Theresa May has lost her mandate to govern in the way she wanted to before calling the election. May and her government were aiming for a “hard Brexit”, but now that seems highly unlikely as she now has to negotiate her policies in the UK parliament with a stronger opposition. The PM will likely have to soften some of her Brexit stances in order for policies to pass.

There are also a few announcements due out of the UK later tonight. These announcements include:  CPI & Core CPI, PPI Input & Output, RPI and HPI. The most significant figure is the CPI figure. This denotes inflation within the economy, which if controlled, is good for the economy as it helps economic growth. Inflation reflects demand for products and services. This demand means people are spending money, therefore spurring economic growth.

Elsewhere, Europe is publishing French Final Non-Farm Payrolls, German WPI and German & European ZEW Economic Sentiment. The US is releasing NFIB Small Business Index, PPI and Core PPI.