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According to analysts at Nordea Markets, in a relatively quiet upcoming week, they will look for clues on US growth in the ISM-non manufacturing and whether the UK is edging towards a technical recession.

Key Quotes

“In terms of growth, markets will have to see a stabilisation of the ISM composite in the US to buy into Powell’s “mid-cycle” rhetoric. We still don’t see a bottom in ISM composite (yet) and  hence expect markets to continue to look for more cuts than what the Fed are willing to commit to for now.”

“In the UK, we see a risk of a negative q/q growth in Q2, after the first quarter was held up by stockpiling ahead of the first Brexit deadline. Stockpiling could though become a theme in Q3 again ahead of the new October deadline, but the momentum is clearly slowing in the UK. Could it be time for the Bank of England to start sounding more dovish? This week’s BoE meeting was a complete non-event though.”

“In the meanwhile, the Conservatives continue to surge in polls after Boris Johnson’s more firm communication on Brexit.  BoJo’s incentives to call a snap election are rising.”