UK wage growth hits a record in June, putting more pressure on the BOE

US indices

US indices closed higher on Monday, led by the tech sector. NVIDIA rose 9%, and AMD ended the session 5% higher.

Japan overview

In Japan, the Nikkei traded higher as the economy grew much faster than expected in the second quarter, gaining 1.5%, much bigger than median estimates of 0.8%. A performance due to a brisk rebound in exports. Exports expanded 3.2% in the second quarter, led by car exports as Japanese automakers benefited from a weaker yen.

Chinese economy overview

In China, an array of economic indicators released this morning show that the World's second-largest economy has slowed further. Industrial output rose 3.7% from a year earlier, a slower rate than the 4.4% in June and below expectations for a 4.4% increase.

The People's Bank of China

Retail sales rose 2.5%, down from a 3.1% increase in June and missing analysts' forecasts of 4.5% growth. The unemployment rate rose one notch to 5.3%. Less than an hour before the release of a batch of July data, the People's Bank of China (PBOC) cut its one-year marginal lending facility rate (MLF) for the second time in three months by 15 basis points to 2.5%.

UK umemployment

In the UK, the unemployment rate unexpectedly rose in June to 4.2%. Economists had expected the rate to remain at 4%. Unemployment in the UK is back to levels not seen since October 2021.

UK GDP

Average hourly earnings, including bonus growth, accelerated in June to 8.2%. After the gross domestic product (GDP) figures reported last week were better than expected and consensus was firmly in favour of more rate hikes, But whether or not 50bps is back on the table or the Bank of England (BOE) might communicate a less aggressive stance moving forward is up to the CP| to figure out. tomorrow.

ZEW

At 10 a.m. in Germany, ZEW (Zentrum für Europäische Wirtschaftsforschung) economic sentiment is expected to remain at -14.7 in August.

US retail sales

Also, a few indicators are scheduled in the US. retail sales are forecast to rise by 0.4% in July MoM. Then at 3 p.m., The National Association of Home Builders (NAHB) housing market index is expected to remain at 56 in August, and business inventories are seen rising by 0.1% in June month-over-month (MOM).

Legal & General

On the equity market, Legal & General reported an above-forecast operating profit of £941 million in the first half and said it was on track to meet its five-year ambitions. Marks & Spencer said the first 19 weeks of the year have seen continued market share growth in both the clothing and home and food businesses.

Just Group

Just Group posted an underlying operating profit of £173 million, up 154%, driven by significantly higher new business profits.

Home Depot

Over in the US, Home Depot is set to report at 11 a.m. UK time on Tuesday. Like other do it yourself (DIY) chains, Home Depot is going through tough times. After benefiting from an increase in spending during the pandemic, Home Depot is now having to deal with a slowdown in consumer spending, aggravated by high inflation, which forced consumers to prioritise essential goods such as food and energy.

Adjusted earnings per share (EPS) is estimated to drop 11.7% to $4.46. Revenue is forecast to fall by nearly 4% to $42.2 billion.