Markets Overview

The US’ most significant data release is probably today’sISM non-manufacturing index for May, which consensussees at 57.1 versus 57.5. The prices component is likely tobe important for inflation expectations after recent subdueddata and a significant dip in the manufacturing PMI pricesindex. Monday also sees final Q1 productivity and costsdata, plus factory orders for Apr.

    In the UK it is all about Thursday’s election as the result willhave a significant bearing on Brexit negotiations. It seemsas though PM Theresa May will retain her position as theTory leader holds a small lead against Jeremy Corbyn, thehead of the Labour party, but the outcome may derail thenear-term recovery in the GBP should May fail to establish amore unified government. Note that Brexit negotiations areslated to start on 19 June. This week, there are also a coupleof data releases to watch too, including Monday’s Markit/CIPS services and composite PMIs for May, and Friday’sApril Industrial production data.