European Central Bank – Mario Draghi’s time as the President of the European Central Bank is coming to an end, and the successor has been chosen. The chair of the International Monetary Fund, Christine Lagarde, has accepted the role. Lagarde is seen to have an aggressive stance on monetary policy, and is widely expected to be stock market friendly when she steps into the role.
US-EU tariffs – US President Donald Trump’s administration is threatening to introduce new tariffs on products imported from the EU, thought to be worth in the region of $4bn, in a major escalation in the ongoing trade war. Just a few days after the US and China agreed a truce in their negotiations, US trade representatives released a list of products they would like to increase tariffs on coming from the EU. The list includes products such as whisky, pork, pastas, and popular cheeses.
UK PMI data – UK services purchasing managers’ index data unexpectedly fell in June, coming in at 50.2, down from May’s figure of 51.0. June’s data indicates that the services sector’s business activity was close to the contraction point of 50.0, and the lowest score in three months. Both manufacturing and construction PMI figures came in below 50.0, which combined, point to a 0.1% contraction in UK GDP in the second quarter.