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| US rate hike expectations fade as inflation and consumer spending fall - as it happened | US rate hike expectations fade as inflation and consumer spending fall - as it happened |
| (4 months later) | |
| Before closing up, let’s take a look at the markets. | Before closing up, let’s take a look at the markets. |
| Wall Street is up in early trading, as weaker data appeared to dampen the chances of further rate rises this year: | Wall Street is up in early trading, as weaker data appeared to dampen the chances of further rate rises this year: |
| Dow Jones: +0.1% at 21,566 | Dow Jones: +0.1% at 21,566 |
| S&P 500: +0.2% at 2,453 | S&P 500: +0.2% at 2,453 |
| Nasdaq: +0.4% at 5,815 | Nasdaq: +0.4% at 5,815 |
| The picture in Europe is more mixed: | The picture in Europe is more mixed: |
| FTSE 100: -0.3% at 7,392 | FTSE 100: -0.3% at 7,392 |
| Germany’s DAX: -0.2% at 12,615 | Germany’s DAX: -0.2% at 12,615 |
| France’s CAC: -0.1% at 5,233 | France’s CAC: -0.1% at 5,233 |
| Italy’s FTSE MIB: -0.3% at 21,457 | Italy’s FTSE MIB: -0.3% at 21,457 |
| Spain’s IBEX: +0.1% at 10,665 | Spain’s IBEX: +0.1% at 10,665 |
| Europe’s STOXX 600: +0.1% at 387 | Europe’s STOXX 600: +0.1% at 387 |
| The pound is still going (relatively) strong, up 1% against the dollar at $1.3058. | The pound is still going (relatively) strong, up 1% against the dollar at $1.3058. |
| Sterling is up 0.6% against the dollar at €1.1406. | Sterling is up 0.6% against the dollar at €1.1406. |
| That’s all for today. Thank you for all the comments and please join us again on Monday. Have a good weekend. AM | That’s all for today. Thank you for all the comments and please join us again on Monday. Have a good weekend. AM |
| Before we take a look at Wall Street, the Guardian’s Helena Smith brings us this report on Cyprus: | Before we take a look at Wall Street, the Guardian’s Helena Smith brings us this report on Cyprus: |
| It is not just Greece that is enjoying a bumper tourism season this year. Cyprus’ national statistics office announced today that revenues from tourism have risen considerably, enabling the island to bounce back from its economic crisis. | It is not just Greece that is enjoying a bumper tourism season this year. Cyprus’ national statistics office announced today that revenues from tourism have risen considerably, enabling the island to bounce back from its economic crisis. |
| Tourism revenues grew by 25% between January and April, Cystat, said. | Tourism revenues grew by 25% between January and April, Cystat, said. |
| The data agency attributed the increase to an annual 4.6% rise in average daily spending per person to €75.23. Brits, who comprise nearly half of the 3.2 million annual tourists who visit Cyprus, shortened their average length of stay by 0.2 days to 9.7 days in April, but their increased spending more than made up for the time lost, according to the service. | The data agency attributed the increase to an annual 4.6% rise in average daily spending per person to €75.23. Brits, who comprise nearly half of the 3.2 million annual tourists who visit Cyprus, shortened their average length of stay by 0.2 days to 9.7 days in April, but their increased spending more than made up for the time lost, according to the service. |
| Greece - which is braced for an unprecedented 30 million foreign visitors this year - and Cyprus have both benefited from tourists staying away from Turkey and Egypt because of security concerns. | Greece - which is braced for an unprecedented 30 million foreign visitors this year - and Cyprus have both benefited from tourists staying away from Turkey and Egypt because of security concerns. |
| Falling food and petrol prices contributed to the drop in the annual rate of US inflation, to 1.6% in June from 1.9% in May. | Falling food and petrol prices contributed to the drop in the annual rate of US inflation, to 1.6% in June from 1.9% in May. |
| The Labor Department figures showed that core inflation – stripping out food and energy - was unchanged at 1.7% in June. | The Labor Department figures showed that core inflation – stripping out food and energy - was unchanged at 1.7% in June. |
| Paul Ashworth, chief US economist at Capital Economics, is still expecting the Fed to raise rates in the second half of this year: | Paul Ashworth, chief US economist at Capital Economics, is still expecting the Fed to raise rates in the second half of this year: |
| With its dual mandate, the Fed needs to take into account the decline in the unemployment rate this year as well as the drop back in core inflation. For that reason, we still expect the Fed to continue raising interest rates in the second half of this year. | With its dual mandate, the Fed needs to take into account the decline in the unemployment rate this year as well as the drop back in core inflation. For that reason, we still expect the Fed to continue raising interest rates in the second half of this year. |
| Nevertheless, the odds of a September rate hike are fading. | Nevertheless, the odds of a September rate hike are fading. |
| James Knightley, chief international economist at ING, says the weak inflation and retail sales figures will make the Fed waver even more when considering its next policy move. | James Knightley, chief international economist at ING, says the weak inflation and retail sales figures will make the Fed waver even more when considering its next policy move. |
| US inflation and retail sales came in on the softer side of expectations, reinforcing the view in the market’s mind that the Fed won’t carry through with the four rate hikes they are currently forecasting before end 2018. | US inflation and retail sales came in on the softer side of expectations, reinforcing the view in the market’s mind that the Fed won’t carry through with the four rate hikes they are currently forecasting before end 2018. |
| The market is pricing in just one and a half hikes. We still look for three – one more this year along with a formal start to balance sheet reduction with two more hikes in 2018. | The market is pricing in just one and a half hikes. We still look for three – one more this year along with a formal start to balance sheet reduction with two more hikes in 2018. |
| Our reasoning is that inflation is likely be back above 2% in the fourth quarter while GDP looks set to grow by around 3% in the second quarter. | Our reasoning is that inflation is likely be back above 2% in the fourth quarter while GDP looks set to grow by around 3% in the second quarter. |
| The dollar is down against the yen and the euro (as well as the pound). | The dollar is down against the yen and the euro (as well as the pound). |
| The US currency is at a near two-week low of 112.33 yen, down 0.8% after the weak inflation and retail sales figures. | The US currency is at a near two-week low of 112.33 yen, down 0.8% after the weak inflation and retail sales figures. |
| The euro is up 0.5% against the dollar at $1.1459. | The euro is up 0.5% against the dollar at $1.1459. |
| The dollar’s loss from the weak US data is the pound’s gain... | The dollar’s loss from the weak US data is the pound’s gain... |
| The pound is up 0.5% at $1.2996, within touching distance of that $1.30 mark. | The pound is up 0.5% at $1.2996, within touching distance of that $1.30 mark. |
| US consumer price inflation has fallen more sharply than expected, to 1.6% in June from 1.9% in May. | US consumer price inflation has fallen more sharply than expected, to 1.6% in June from 1.9% in May. |
| Consumer spending was also weaker than expected, with a surprise 0.2% fall in retail sales in June, versus expectations of a 0.1% rise. | Consumer spending was also weaker than expected, with a surprise 0.2% fall in retail sales in June, versus expectations of a 0.1% rise. |
| More soon... | More soon... |
| Craig Erlam, analyst at currency trader Oanda, says markets are subdued ahead of the US inflation and retail sales data, due at 13.30, as investors wait for clues on the next move from the Fed. | Craig Erlam, analyst at currency trader Oanda, says markets are subdued ahead of the US inflation and retail sales data, due at 13.30, as investors wait for clues on the next move from the Fed. |
| It’s been a sluggish start to trading on Friday as traders await inflation and consumer spending numbers from the US that could add a further dovish layer to Janet Yellen’s comments on Wednesday. | It’s been a sluggish start to trading on Friday as traders await inflation and consumer spending numbers from the US that could add a further dovish layer to Janet Yellen’s comments on Wednesday. |
| It’s become very clear in recent weeks that an increasing number of Federal Reserve policymakers are becoming concerned about persistent subdued inflation despite evidence suggesting that the labour market is tightening, typically a trigger for stronger wage growth and higher prices. | It’s become very clear in recent weeks that an increasing number of Federal Reserve policymakers are becoming concerned about persistent subdued inflation despite evidence suggesting that the labour market is tightening, typically a trigger for stronger wage growth and higher prices. |
| While headline consumer price inflation is expected to fall to 1.7% in June, from 1.9% in May, core CPI is seen unchanged also at 1.7%. This isn’t going to put policy makers fears at ease at all. | While headline consumer price inflation is expected to fall to 1.7% in June, from 1.9% in May, core CPI is seen unchanged also at 1.7%. This isn’t going to put policy makers fears at ease at all. |
| The pound is up against both the dollar and the euro. | The pound is up against both the dollar and the euro. |
| It hit an 11-day high against the dollar, at $1.2984, up 0.3%. | It hit an 11-day high against the dollar, at $1.2984, up 0.3%. |
| Sterling is up 0.2% against the euro at €1.1365. | Sterling is up 0.2% against the euro at €1.1365. |
| JP Morgan Chase has kicked off the US banks reporting season for the second quarter with better than expected results. | JP Morgan Chase has kicked off the US banks reporting season for the second quarter with better than expected results. |
| The biggest US bank by assets reported a 13.4% increase in quarterly profits, as gains from higher interest rates offset a drop in bond trading. | The biggest US bank by assets reported a 13.4% increase in quarterly profits, as gains from higher interest rates offset a drop in bond trading. |
| Net income rose to $7.03bn in the second quarter ended 30 June, from $6.2bn a year earlier. Earnings per share rose to $1.82 from $1.55, beating analysts’ expectations. | Net income rose to $7.03bn in the second quarter ended 30 June, from $6.2bn a year earlier. Earnings per share rose to $1.82 from $1.55, beating analysts’ expectations. |
| Revenue of $26.4bn was also better than expected. | Revenue of $26.4bn was also better than expected. |
| Jamie Dimon, chairman and chief executive, commented on the figures: | Jamie Dimon, chairman and chief executive, commented on the figures: |
| We continued to post very solid results against a stable-to- improving global economic backdrop. The US consumer remains healthy, evidenced in our strong underlying performance in consumer and community banking. Loans and deposits continue to grow strongly, and card sales and merchant processing volumes were up double digits. | We continued to post very solid results against a stable-to- improving global economic backdrop. The US consumer remains healthy, evidenced in our strong underlying performance in consumer and community banking. Loans and deposits continue to grow strongly, and card sales and merchant processing volumes were up double digits. |
| We are also pleased to announce increases to our capital return plans while continuing to invest in our businesses for long-term profitability – reflecting the financial strength of our company and the significant capital and liquidity improvements we have made over the past several years. | We are also pleased to announce increases to our capital return plans while continuing to invest in our businesses for long-term profitability – reflecting the financial strength of our company and the significant capital and liquidity improvements we have made over the past several years. |
| Citigroup and Wells Fargo are also expected to report today. | Citigroup and Wells Fargo are also expected to report today. |
| Roughly 1.5m new cars were sold in Europe in June, 2.1% more than the same month last year and the highest number since June 2007, just before the global crisis struck a blow to the industry. | Roughly 1.5m new cars were sold in Europe in June, 2.1% more than the same month last year and the highest number since June 2007, just before the global crisis struck a blow to the industry. |
| The figures from the European Automobile Manufacturers Association show that the wider European market is outperforming the UK, where new car sales fell for a third month in June. | The figures from the European Automobile Manufacturers Association show that the wider European market is outperforming the UK, where new car sales fell for a third month in June. |
| Volkswagen is the most popular brand in Europe. | Volkswagen is the most popular brand in Europe. |
| Here is the car sales performance in the top five European economies in June: | Here is the car sales performance in the top five European economies in June: |
| Italy: +12.9% | Italy: +12.9% |
| Spain: +6.5% | Spain: +6.5% |
| France: +1.6% | France: +1.6% |
| Germany: -3.5% | Germany: -3.5% |
| UK: -4.8% | UK: -4.8% |
| Over the first half of 2017, new car sales in Europe rose 4.7% to more than 8 million: | Over the first half of 2017, new car sales in Europe rose 4.7% to more than 8 million: |
| Italy: +8.9% | Italy: +8.9% |
| Spain: +7.1% | Spain: +7.1% |
| Germany: +3.1% | Germany: +3.1% |
| France: +3% | France: +3% |
| UK: -1.3% | UK: -1.3% |
| Eurozone trade was in good shape in May, with the goods surplus rising to €21.4bn from €17.9bn in April. | Eurozone trade was in good shape in May, with the goods surplus rising to €21.4bn from €17.9bn in April. |
| The single currency bloc exported €189.6bn of goods in May, a 12.9% increase on the same month last year. | The single currency bloc exported €189.6bn of goods in May, a 12.9% increase on the same month last year. |
| Imports from the rest of the world also rose, by 16.4% to €168.1bn according to the official figures from Eurostat. | Imports from the rest of the world also rose, by 16.4% to €168.1bn according to the official figures from Eurostat. |
| Over the first five months of 2017, exports were 8.5% higher than the same period a year ago, at trade €898.5bn, while imports were up 12.3% at trade €815.6bn . | Over the first five months of 2017, exports were 8.5% higher than the same period a year ago, at trade €898.5bn, while imports were up 12.3% at trade €815.6bn . |
| Jennifer McKeown, chief European economist at Capital Economics, said the strong trade figures were good news for the wider eurozone economy. | Jennifer McKeown, chief European economist at Capital Economics, said the strong trade figures were good news for the wider eurozone economy. |
| The widening of the euro-zone’s trade surplus in May adds to signs that GDP growth may have accelerated in the second quarter. And in contrast to the situation last year, we expect net trade to boost euro-zone GDP growth in the quarters ahead. | The widening of the euro-zone’s trade surplus in May adds to signs that GDP growth may have accelerated in the second quarter. And in contrast to the situation last year, we expect net trade to boost euro-zone GDP growth in the quarters ahead. |
| Analysts at TS Lombard said Chinese leaders will be hoping to settle differences at this weekend’s National Financial Work Conference: | Analysts at TS Lombard said Chinese leaders will be hoping to settle differences at this weekend’s National Financial Work Conference: |
| This year’s meeting has attracted particular attention after Xi Jinping is said to have demanded better regulatory coordination following the July 2015 stock market correction and large-scale capital outflows in H2/15. There had been discussion of moving the meeting up to summer 2016 – half a year ahead of schedule. In the end, however, the meeting, which should have been held in January, has ended up being delayed by disagreements about how to approach regulation. | This year’s meeting has attracted particular attention after Xi Jinping is said to have demanded better regulatory coordination following the July 2015 stock market correction and large-scale capital outflows in H2/15. There had been discussion of moving the meeting up to summer 2016 – half a year ahead of schedule. In the end, however, the meeting, which should have been held in January, has ended up being delayed by disagreements about how to approach regulation. |
| These disagreements have centred around a potential restructuring of the regulatory system. | These disagreements have centred around a potential restructuring of the regulatory system. |
| The final decision has not been made, but reports are that a new People’s Bank of China-led office will be established with representatives from other regulators and key government bodies such as the Ministry of Finance and the Development and Reform Commission. | The final decision has not been made, but reports are that a new People’s Bank of China-led office will be established with representatives from other regulators and key government bodies such as the Ministry of Finance and the Development and Reform Commission. |
| The sale of government shares in bailed out bank Royal Bank of Scotland was “value for money” despite losses for the taxpayer of nearly £2bn. | The sale of government shares in bailed out bank Royal Bank of Scotland was “value for money” despite losses for the taxpayer of nearly £2bn. |
| That’s the verdict of the public spending watchdog, the National Audit Office, which has published a report on the controversial sale of a 5.4% two years ago. | That’s the verdict of the public spending watchdog, the National Audit Office, which has published a report on the controversial sale of a 5.4% two years ago. |
| The NAO concluded the sale was “well planned and organised and represented value for money”. | The NAO concluded the sale was “well planned and organised and represented value for money”. |
| The Press Association reports: | The Press Association reports: |
| The sale came under heavy criticism at the time after the Government offloaded its first tranche of shares in RBS at a 52-week low. | The sale came under heavy criticism at the time after the Government offloaded its first tranche of shares in RBS at a 52-week low. |
| There was also speculation over leaked information after shares plunged 8% in the three days before the sale as hedge funds bet against RBS. | There was also speculation over leaked information after shares plunged 8% in the three days before the sale as hedge funds bet against RBS. |
| It was originally estimated that the 2015 share sale saw losses of £1.1 billion on the price paid under the £45.5 billion bailout of RBS at the height of the financial crisis. | It was originally estimated that the 2015 share sale saw losses of £1.1 billion on the price paid under the £45.5 billion bailout of RBS at the height of the financial crisis. |
| But the NAO said, taking into account costs of financing the rescue, losses on the stake sale soared to £1.9 billion. | But the NAO said, taking into account costs of financing the rescue, losses on the stake sale soared to £1.9 billion. |
| It comes a day after RBS was ordered to pay $5.5bn (£4.2bn) to US regulators for misselling toxic mortgage bonds: | It comes a day after RBS was ordered to pay $5.5bn (£4.2bn) to US regulators for misselling toxic mortgage bonds: |
| John Lewis says consumers are increasingly unwilling to spend money on big ticket items as confidence wanes and incomes are squeezed by higher prices and weak wage growth. | John Lewis says consumers are increasingly unwilling to spend money on big ticket items as confidence wanes and incomes are squeezed by higher prices and weak wage growth. |
| Paula Nickolds, the new chief executive of Britain’s biggest department store, said demand had dropped for the larger, non essential purchases. However the ‘lipstick effect’ appears to have kicked in, where cash-strapped consumers are more willing to buy less costly luxurious goods, instead of that new TV or piece of furniture. | Paula Nickolds, the new chief executive of Britain’s biggest department store, said demand had dropped for the larger, non essential purchases. However the ‘lipstick effect’ appears to have kicked in, where cash-strapped consumers are more willing to buy less costly luxurious goods, instead of that new TV or piece of furniture. |
| Nickolds told journalists at a press dinner: | Nickolds told journalists at a press dinner: |
| It’s the more considered categories, the arguably deferrable spend, that we’re seeing most affected by the uncertainty in the macro conditions - so those big ticket categories are currently trading just behind last year. | It’s the more considered categories, the arguably deferrable spend, that we’re seeing most affected by the uncertainty in the macro conditions - so those big ticket categories are currently trading just behind last year. |
| “We believe [spontaneous categories such as beauty] to be significantly ahead of the market. Perhaps it’s the lipstick effect as we might have called it back in the recession [of 2008].” | “We believe [spontaneous categories such as beauty] to be significantly ahead of the market. Perhaps it’s the lipstick effect as we might have called it back in the recession [of 2008].” |
| Acknowledging the challenging consumer backdrop, Nickolds said: | Acknowledging the challenging consumer backdrop, Nickolds said: |
| I would have preferred to start my first year as managing director of John Lewis in slightly more benign conditions. The backdrop is very uncertain and it was made worse by the tragic events that happened across British cities over the last few months. | I would have preferred to start my first year as managing director of John Lewis in slightly more benign conditions. The backdrop is very uncertain and it was made worse by the tragic events that happened across British cities over the last few months. |
| Consumers feel uncertain and worried about what the circumstances will mean for their future financial prosperity. | Consumers feel uncertain and worried about what the circumstances will mean for their future financial prosperity. |
| Some respite for Carillion this morning with shares up 4.6% at 60p, making the building group the top riser on the FTSE 250. | Some respite for Carillion this morning with shares up 4.6% at 60p, making the building group the top riser on the FTSE 250. |
| After heavy losses every day this week, shares have been boosted by the news that the troubled company has appointed HSBC as its joint financial adviser and joint corporate broker. | After heavy losses every day this week, shares have been boosted by the news that the troubled company has appointed HSBC as its joint financial adviser and joint corporate broker. |
| Analysts at investment bank Jefferies warned earlier this week that Carillion was unlikely to survive without a hefty rights issue of at least £500m. | Analysts at investment bank Jefferies warned earlier this week that Carillion was unlikely to survive without a hefty rights issue of at least £500m. |
| Carillion is a major contractor to customers such as the Highways Agency and Network Rail and investors panicked on Monday when it revealed an £845m writedown against customer payments it no longer expected to be able to collect. | Carillion is a major contractor to customers such as the Highways Agency and Network Rail and investors panicked on Monday when it revealed an £845m writedown against customer payments it no longer expected to be able to collect. |
| At the same time it announced chief executive Richard Howson had immediately stepped down. Over subsequent days 70% of its market value was wiped out as shares plummeted. Shares were worth 200p a month ago. | At the same time it announced chief executive Richard Howson had immediately stepped down. Over subsequent days 70% of its market value was wiped out as shares plummeted. Shares were worth 200p a month ago. |
| A reminder of how events unfolded: | A reminder of how events unfolded: |
| European markets are steady in early trading, with only small moves. | European markets are steady in early trading, with only small moves. |
| FTSE 100: -0.03% at 7,411 | FTSE 100: -0.03% at 7,411 |
| Germany’s DAX: -0.1% at 12,633 | Germany’s DAX: -0.1% at 12,633 |
| France’s CAC: +0.03% at 5,237 | France’s CAC: +0.03% at 5,237 |
| Italy’s FTSE MIB: -0.03% at 21,516 | Italy’s FTSE MIB: -0.03% at 21,516 |
| Spain’s Ibex: +0.04% at 10,663 | Spain’s Ibex: +0.04% at 10,663 |
| Europe’s STOXX 600: +0.03% at 386 | Europe’s STOXX 600: +0.03% at 386 |
| China’s leaders gather every five years to discuss ways to improve the financial system of the world’s second largest economy. | China’s leaders gather every five years to discuss ways to improve the financial system of the world’s second largest economy. |
| The next meeting of the National Financial Work Conference takes place today and tomorrow in Beijing and President Xi Jinping is expected to attend. | The next meeting of the National Financial Work Conference takes place today and tomorrow in Beijing and President Xi Jinping is expected to attend. |
| Items on the agenda are likely to include reining in financial risk, and giving the central bank a bigger role in overseeing other financial regulators. | Items on the agenda are likely to include reining in financial risk, and giving the central bank a bigger role in overseeing other financial regulators. |
| Some background on the history of the meeting from Bloomberg: | Some background on the history of the meeting from Bloomberg: |
| The meeting has held a special place in China’s economic and political calendar since it was introduced to encourage more sustainable economic growth following the Asian financial crisis. | The meeting has held a special place in China’s economic and political calendar since it was introduced to encourage more sustainable economic growth following the Asian financial crisis. |
| The first conference in 1997 saw the establishment of an insurance regulator and a plan to bail out China’s largest banks. The second led to the creation of a banking regulator and a drive to list major state-owned lenders on overseas stock exchanges. | The first conference in 1997 saw the establishment of an insurance regulator and a plan to bail out China’s largest banks. The second led to the creation of a banking regulator and a drive to list major state-owned lenders on overseas stock exchanges. |
| The 2007 conference oversaw the creation of the sovereign wealth fund, China Investment Corp., which now has $813.5 billion of assets. The meeting in 2012 focused on the fallout from the global financial crisis. | The 2007 conference oversaw the creation of the sovereign wealth fund, China Investment Corp., which now has $813.5 billion of assets. The meeting in 2012 focused on the fallout from the global financial crisis. |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| European markets are expected to follow Wall Street higher this morning as investors continue to digest the more cautious tone from Fed chair Janet Yellen. | European markets are expected to follow Wall Street higher this morning as investors continue to digest the more cautious tone from Fed chair Janet Yellen. |
| A rate hike in September is no longer looking like a foregone conclusion after Yellen highlighted weak inflation as a factor weighing on the minds of policymakers. | A rate hike in September is no longer looking like a foregone conclusion after Yellen highlighted weak inflation as a factor weighing on the minds of policymakers. |
| Michael Hewson from CMC Markets explains: | Michael Hewson from CMC Markets explains: |
| The Dow Jones posted another record close, while the US dollar remained under pressure as markets adjusted to how the next moves on monetary policy might play out. | The Dow Jones posted another record close, while the US dollar remained under pressure as markets adjusted to how the next moves on monetary policy might play out. |
| The prospect that further interest rate rises may well be much more gradual, if they happen at all, shouldn’t have been entirely unexpected given the risks involved in trying to withdraw stimulus and raise rates at the same time, nonetheless judging by the market reaction it appears to have gone down fairly well. | The prospect that further interest rate rises may well be much more gradual, if they happen at all, shouldn’t have been entirely unexpected given the risks involved in trying to withdraw stimulus and raise rates at the same time, nonetheless judging by the market reaction it appears to have gone down fairly well. |
| With that in mind, investors will be focused on the latest US inflation data, due at 13.30 UK time. It is expected to show consumer price inflation fell to 1.7% in June from 1.9% in May. | With that in mind, investors will be focused on the latest US inflation data, due at 13.30 UK time. It is expected to show consumer price inflation fell to 1.7% in June from 1.9% in May. |
| US retail sales data for June will also be published at 13.30, and are expected to show the sector managed growth of just 0.1% last month, following a 0.3% drop in sales in May. | US retail sales data for June will also be published at 13.30, and are expected to show the sector managed growth of just 0.1% last month, following a 0.3% drop in sales in May. |
| Traders at spread betting firm IG expect European markets to open higher: | Traders at spread betting firm IG expect European markets to open higher: |
| Our European opening calls:$FTSE 7421 +0.11%$DAX 12647 +0.05%$CAC 5244 +0.16%$IBEX 10679 +0.20%$MIB 21547 +0.12% | Our European opening calls:$FTSE 7421 +0.11%$DAX 12647 +0.05%$CAC 5244 +0.16%$IBEX 10679 +0.20%$MIB 21547 +0.12% |