Providing you with a short summary of events from around the world ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Blackfinch Group
Monday Market Update

The ever-changing world we live in reinforces the importance
of regular up-to-date communication. This weekly news update from our
multi-asset portfolio managers provides you with a summary of global events
 for your reference and to share with clients.

Issue 150 | 10th July, 2023 

UK COMMENTARY

  • Economic activity in the manufacturing sector fell to a six-month low in June, according to the seasonally-adjusted S&P Global/CIPS purchasing managers’ index (PMI) survey. It fell from 47.1 in May to 46.5 in June, with new orders and employment both declining. A reading below 50 represents economic contraction.

  • The PMI reading for the services sector fell from 55.2 in May to 53.7 in June (also seasonally-adjusted), its weakest in three months, with slower increases in business activity and new work.  

  • Data from Moneyfacts showed the average five-year fixed rate UK residential mortgage had increased to 6.01%, with the average two-year fixed rate rising to 6.47%.

  • The S&P Global/CIPS PMI survey for the construction sector revealed house building activity fell at its sharpest pace since May 2020, driven down by weaker demand due to higher borrowing costs.

  • Data from Halifax showed UK house prices falling at their fastest rate for 12 years, dropping by 2.6% year-on-year in June.

  • The UK’s competition watchdog, the Competition and Markets Authority, warned that motorists have been paying higher prices for petrol and diesel due to weak competition. It said traditional price leaders, including some supermarket chains, had taken a “less aggressive approach to pricing” since 2019.

NORTH AMERICA COMMENTARY

  • Minutes from the US Federal Open Market Committee meeting in June showed its members believe further interest rate increases will be required to curb inflation.

  • The US jobs report fell short of forecasts for the first time in 15 months, with non-farm payrolls rising by 209k in June, down from the 339k in May, and below consensus expectations of 230k.

  • The Institute for Supply Management manufacturing PMI survey fell to 46.0 in June, the lowest level since May 2020. This was down from 46.9 in May, and below the forecast increase of 47.0, making June the eighth consecutive month of contraction.

EUROPE COMMENTARY

  • European Central Bank vice-president Luis de Guindos said most indicators showed “some signs of softening” of Europe’s underlying price pressures, suggesting inflation was on a downward trajectory across the Eurozone.

ASIA COMMENTARY

  • Reports suggested China was planning to restrict exports of gallium and germanium, two key metals used to manufacture computer processors. China is currently the world’s largest producer of the metals, and the move was considered by many as a retaliatory move after the US and other countries imposed sanctions on China’s tech export industry.

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