IHS Markit Manufacturing PMI data (purchasing managers’ index) for the UK and the Eurozone for June are due this morning. Stocks are higher ahead of the numbers. Meanwhile shares in Asia pulled back after latest manufacturing PMI data from China slowed to 51.3 in June, below estimates of 51.8 and a three month low.
Today also sees the latest weekly US jobless claims data ahead of tomorrow’s key jobs report where the general forecast is for 683,000 new jobs added in June.
A week ago the Bank of England’s Monetary Policy Committee echoed the US Fed’s official stance on inflation, describing the recent rise as “transitory” and said they expect inflation “to go above 3%” for a temporary period. However, the BoE’s chief economist, Andy Haldane, gave a warning on Thursday saying “by the end of this year, I expect UK inflation to be nearer 4% than 3%.” He joins the growing number calling for more immediate action from central banks to take action sooner rather than later to reduce inflationary pressures.
Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’