Two news market movers today: UK GDP numbers emerge at 9.30am while a US Federal Reserve policy statement – an interest rate announcement – arrives at 6pm. The UK GDP numbers give a clear idea of how the UK economy is doing.
Consensus is for quarterly UK GDP growth to come in at 0.3% – a small pick-up in activity from first quarter growth of 0.2% says analyst Laith Khalaf at Hargreaves Lansdown.
“Economic growth provides employment and wage rises, and helps to keep government borrowing in check. It also influences monetary policy, which determines monthly mortgage payments, and how much interest we get on our cash in the bank.”
So the GDP number is significant for just about everyone. Overnight the pound was 0.03% higher at $1.3026 while the euro was down -0.11% at $1.1639.
On the news front the government’s proposal to ban new petrol and diesel cars by 2040 is a boost for battery-related tech players. Other news out today... look out for US mortgage application numbers at midday and US crude oil inventories at 3.30pm.
- UK FTSE 100 7,434.82 +0.77%
- Dow 21,613.43 +0.47%
- S&P 500 2,477.13 +0.29%
- Nasdaq 6,412.17 +0.02%
- Nikkei 225 20,034.30 +0.40%
- DAX 12,264.31 +0.45%
- CAC 40 5,161.08 +0.65%
- Gold 1,251.00 -0.60%
- Oil WTI 48.33 +0.92%
ITV boosted by Love Island
Let’s get some telly in first. ITV says overall group revenues expanded 7% to almost £700m for the first six months of 2017 though earnings slumped 9% to £110m.
ITV boss Peter Bazalgette was upbeat for the most part. “ITV is the only channel to deliver a commercial audience over five million and Love Island demonstrates that young viewers engage in great TV content,” he said.