In the US, markets will focus their attention on the July employment report. This should give an update on the latest employment trends in the US. Significant emphasis will be given to the unemployment rate and the change in manufacturing and non-farm payrolls for July. Meanwhile, economic confidence is likely to have deteriorated in July.
A view on this aspect will be provided by the release of the Consumer Confidence index, Chicago Purchasing Manager Index (PMI), and the ISM manufacturing and price indices. Elsewhere, market participants will delve into the advance estimate of the second quarter Gross Domestic product (GDP). The data schedule will be completed by the release of the construction spending, vehicle sales and the employment cost index.
In the UK, markets will have the final PMI manufacturing for June and the release of the Gfk consumer confidence index. Following the latest British Bankers Association figures, markets expect mortgage approvals to be on the low side during June.
In the Eurozone, the final PMI manufacturing is to be released this week along with the retail indices for the whole euro area. Meanwhile, consumer, economic, industrial and service confidence surveys are all due to be released this week.
Euroland and German unemployment data should provide a view on the evolution of the labour market, while German and Spanish retail sales will capture private consumption trends. Furthermore, the respective authorities will issue the Harmonised Index of Consumer prices (HICP) estimates for Euroland, Italy and Spain along with the French and Italian Producer Price Index (PPI) to complete the view on price trends.
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