UK weekly commentary from Awa Brokers covering highlights, what we’re thinking about the markets and what your clients may be asking this week.
What we think
The purchasing managers survey points to manufacturing and services contracting, despite improvements on previous low levels. While there is hope that UK economic activity should improve as lockdown restrictions are eased, the economic expectations of British industry, including sales and consumer spending continues to be negative.
Week ahead
CBI Industrial Trends Orders (Jun) – Economic expectations exhibited by executives of manufacturing companies in the UK was -62 in May, an indication that the order volume of UK manufacturers is expected to reduce.
Composite PMI - The activity level of UK purchasing managers indicates a contraction. Composite PMI Index was 30.0 in June.
Manufacturing PMI – The manufacturing PMI rose to 40.7, though higher than previous, the reading suggests the manufacturing sector is in contraction.
Services PMI – The services PMI increased to 29.0, 15.6 points higher than previous. However, the reading indicates the service sector is in contraction.
CBI Distributive Trades Survey (Jun) - The British Industry Trades Survey was -50 as forecast in May, even though April reading was lower than estimates, reflecting a pessimistic outlook. Trades survey was -55 in April.
CFTC GBP speculative net positions - The net positions for speculative traders in U.S. futures markets dropped by 16.0K as at June 19, versus the 36.0K drop recorded in June 05.
*For professional clients and qualified investors only
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