Europe was pretty tame after the bell on Friday, with the UK markets bracing themselves for what could be a rather depressing data dump.
Though still above 7250, the FTSE slipped 0.2% as trading got underway, roughly in line with the performances of the DAX and CAC. It could have been worse; the UK index’s mining and banking stocks are all down around 1%, losses that were somewhat compensated for by a 7% rise from WPP (LON:WPP), which insisted its turnaround is on track despite a 43.5% slide in full year pre-tax profit.
Sterling was similarly muted. Against the dollar it was flat at $1.2135, while against the euro it dipped under €1.084 following a 0.1% decline. The pound is likely saving its energy for the data workout it is set to undergo this morning. The UK’s Q2 GDP is expecting to have flat-lined, a sharp drop-off from Q1’s 0.5% increase; the monthly figure, meanwhile, is forecast to drop from 0.3% to 0.1%.
On top of this, the currency is facing a big about face from the manufacturing sector, with production for June estimated at -0.1% against May’s 1.4% increase. Though the pound has been politically-focused of late, it’s hard to see this selection of pre-Brexit warning signs allowing sterling a happy end to the week.
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