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Danske Bank analysts point out that August kicks off with  a wave of PMI data across the globe.

Key Quotes

“Given the frozen escalation of the China-US trade war and softening central banks, we are unlikely to see big changes in European figures reflecting the sentiment in manufacturing with PMIs remaining in negative territory. The US manufacturing PMI data (both ISM and Markit) could still hover just above 50.0.”

Bank of England (BoE) will announce its decision on policy rate at 13:00 CEST, followed by the inflation report,  which could reveal above-target inflation.  In line with unanimous Bloomberg consensus, we expect the rate to stay unchanged at 0.75%, while BoE’s tonality could become more dovish ahead of increasing uncertainty ahead of ‘hard’ Brexit in the environment of economic slowdown and given the possibility of a technical recession.”

US initial jobless claims  are due out this afternoon. The figure is likely to show a marginal increase in inflow of people receiving unemployment benefits, while the most recent number could still be under the 12-month average.”