The week ahead offers few opportunities for BoE speakers to discuss how they view the development. Otherwise, with regards to broader themes for financial markets, worries persist around the strength of global growth and its effect on monetary policy. The IMF, earlier this week, cut its estimates for world GDP growth, reflecting slowdowns in China and the Euro zone, and elevated trade tensions. On that front, though US/China negotiations continue to yield positive soundbites, President Trump’s remarks on unfair European trade practices have generated some fresh concern. Trade data for both countries next week could trigger further comments.
Yesterday’s press conference at the EU emergency summit brought a six-month extension to the UK’s exit date (to 31st Oct), with a review on progress in June. Commission President Junker played down the importance of this review, stating that it was “not another cliff edge”. Sterling’s reaction was muted as markets look for more substantial updates that progress is been made with Brexit.
Today’s EU calendar was again very light and none of the data releases seem had much impact on markets. In the US, the NFIB small business survey will be watched for signs that confidence continued to hold up at the back end of Q1.
Brexit crisis deepens with still no majority in government.