BOE to decide on rates

In the United Kingdom, markets will be avidly awaiting the Bank of England (BOE) rate decision. Despite inflationary pressures and the ongoing slowdown in growth, interest rates are expected to be kept on hold in July's Monetary Policy Committee (MPC) meeting. On the activity side, the manufacturing and industrial production figures for May will be released this week. In terms of consumer sentiment, market participants will have the release of the Nationwide consumer confidence survey for June. In conclusion, visible and total trade balance figures for the month of May will wrap things up for this week's data figures.

In the United States, markets will focus their attention on the speech by the Federal Reserve Chairman Ben Bernanke on mortgage lending. In terms of employment, markets will delve into the initial jobless and continuing claims figures. The MBA Mortgage Applications for July along with the pending home sales figure for May will provide a further insight on the US housing market. Meanwhile, soaring oil prices are likely to have weighted negatively on the consumer sentiment in July. The import price index along with the trade balance figures for May are also due to be released this week. Wholesale inventories for May will complete the release calendar for the week.

In Euroland, market participants will have the final estimate of Eurozone's Gross Domestic Product the first quarter. Information on activity levels in the manufacturing sector will be provided through the release of Industrial production data for the big economies (except Spain) along with German and French trade balance figures. A view on the investor's confidence level within the Eurozone during July will be provided by the release of the Sentix Investor confidence. Finally, Spanish Harmonized Index of Consumer Prices (HICP) for June and German current account data will complete the release calendar for the week.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.