All eyes on Brexit and UK GDP today – Danske Bank
Analysts at Danske Bank highlight the key event risks that will hog the limelight in the day ahead.
“Today all eyes remain on Brexit and whether a snap election will be called as UK lawmakers are casting a second vote today.
We will also watch out for the monthly UK GDP estimate for July, giving us a first hint where the economy is moving at the start of Q3. Based on PMIs, we cannot rule out the UK has fallen into a ‘technical recession’ (i.e. two quarters of GDP contraction).
In the euro area Sentix investor confidence for September is due for release. In August sentiment plunged to the lowest level in five years amid fears about an escalating trade war and we would be surprised to see an increase today amid the growing uncertainty on the global geopolitical stage.
European stocks seen mixed as investors eye Brexit battle and stimulus hopes
- Brexit remains in focus with opposition lawmakers reportedly due to request an emergency debate on Monday in a bid to force Prime Minister Boris Johnson to adhere to a new law forcing him to seek an extension from Brussels if no deal can be agreed before October 31.
- Market mood is cautiously hopeful of likely stimulus from central banks to support growth in the world’s major economies, after data releases last week showed further signs of struggle.
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