UK Politics and Eurozone Business Confidence amongst market movers today – Danske Bank

Danske Bank analysts point out that following Prime Minister Boris Johnson's decision to prorogue the UK parliament from mid-September to mid-October, financial markets will monitor very closely any signals from the UK parliamentarians and the likelihood of the opposition getting a no-confidence vote through next week.

Key Quotes

“We also keep a close eye on the political negotiations in Italy.”

“In the euro area , we get various measures of business confidence, which will provide important clues about how the recent escalation of the trade war in late July and negative market developments have affected business confidence.”

“In the Scandi region , there is a couple of important releases, notably Norway mainland GDP, which we expect expanded 0.8% q/q in Q2, and the Swedish NIER's monthly confidence survey.”

“Overnight in Japan , we get the July industrial production data. The manufacturing sector is still the one suffering the most from weaker global demand. PMIs point towards another weak month. On the same day, retail sales tick in. Domestic demand has remained fairly robust, supported by a tight labour market.”