The key points from today’s economic news, brought to you by Guardian Stockbrokers.
BoE: No-deal Brexit might cause significant market turmoil
The Bank of England (BoE), in its bi-annual Financial Stability Report, warned that the increasing possibility of a no-deal Brexit could cause massive disruption to the UK economy. Additionally, the report highlighted a gloomy outlook for the UK economy, citing no-deal Brexit risks and trade tensions.
ECB Minutes: ECB officials hints at monetary policy easing
Minutes of the European Central Bank’s (ECB) June meeting signalled that policymakers are in favour of interest rate cut decision, amid concerns over slowing global growth and trade disputes. Moreover, the ECB is considering injecting fresh stimulus into the Euro-zone economy through interest rate cuts or the relaunch of a €2.6 trillion bond-buying program.
German CPI rose as expected in June
In Germany, the final consumer price index (CPI) rose 0.30% on a MoM basis in June, compared to a rise of 0.20% in the prior month. Market expectation was for the CPI to advance 0.30%.
US CPI surprisingly rose in June
In the US, the CPI unexpectedly rose 0.10% on a MoM basis in June, higher than market expectations for a steady reading. In the previous month, the CPI had registered a similar rise.
US initial jobless claims fell in the last week
In the US, the seasonally adjusted initial jobless claims fell to a level of 209.00 K in the week ended 06 July 2019, lower than market expectations of a drop to a level of 221.00 K. Initial jobless claims had registered a revised reading of 222.00 K in the previous week.
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