Euro area PMI readings for July on the agenda

It is a quiet start to the new day after some pushing and pulling yesterday, with equities ultimately settling higher though bond yields were taken for a bit of a ride with the CDC warning about rising COVID-19 cases in the US.

10-year yields are keeping below 1.30% and I would argue that there remains some sense of trepidation as such as we look towards the end of the trading week.

So, keep your eyes on developments there as there might be spillovers if the bid/selling gathers more pace in the sessions ahead.

US futures are reflecting calmer tones, with S&P 500 futures up 0.2%, but it is early days.

Euro area flash PMI readings for July will offer something for European traders to digest but overall risk sentiment remains the key driver before the weekend.

0600 GMT - UK June retail sales data

Prior release can be found here. UK retail sales activity is seen moderating further after the reopening in April saw a surge due to pent-up demand. It'll take some time for the underlying trend to work out itself and we'll only have a clearer picture of consumption conditions in the months ahead and later on in 2H 2021.

0715 GMT - France July flash manufacturing, services, composite PMI

0730 GMT - Germany July flash manufacturing, services, composite PMI

0800 GMT - Eurozone July flash manufacturing, services, composite PMI

Euro area economic activity is expected to keep thereabouts in July, sustaining most of the positives from recent months. So far, increasing cost pressures at a record pace are doing little to impact the overall recovery momentum but it is still a key spot to watch in case it starts to dampen activity after the summer perhaps.

0830 GMT - UK July flash manufacturing, services, composite PMI

Prior release can be found here (manufacturing) and here (services). Similarly, UK business activity is estimated to keep thereabouts as seen in June as the recovery continues to hold up for the most part since the reopening in April.

That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.