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Protests and politics

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  • Egypt is likely to occupy the television screens, with the army ultimatum to President Morsi set to expire around 1500 GMT, and protests continuing. Oil prices have remained elevated relative to other commodity prices in this climate.
  • Portugal has lost a minister a day so far this week, although it is not clear whether the foreign minister has actually been allowed to resign. Markets are speculating about the fate of the prime minister, and to the extent that this problem reflects concerns over Euro inspired austerity, there are wider implications.
  • Economic data offers some sanity amidst the politics. Euro area service sector sentiment is expected to show a slowing in the pace of economic slowdown. The UK data should continue to show expansion. UK shop prices fell, and the UK credit survey and Euro retail sales are due.
  • The US has a flurry of data before its holiday tomorrow. Service sector sentiment should accelerate (albeit that caution is required in interpreting the headline numbers on sentiment, as it tends to overreact), and there are trade and jobless claims figures to contend with as well.

Listen to the audio version of this briefing.