The market is really bullish today. Let’s have a closer look.
CBI: British factory orders manage to recover after October dive
In November, UK factory orders managed to recover, although previously in October they sagged steeply. It has been uncovered by a newly-released poll. The given outcomes soothed worries about the scale of a deceleration in the economy of the United Kingdom ahead of the country’s long-awaited departure from the European bloc already in March.
As the Confederation of UK Industry pointed out, its monthly order book balance managed to head north by up to +10 in contrast with October’s reading of -6, which turns out to be the steepest dive for two years.
On the other hand, November's reading appeared to be firmer than all estimates mentioned in a Reuters survey of reputable financial analysts.
As some financial analysts told, that’s so encouraging to observe a gradual improvement in the manufacturing sector after October's tough poll, with order books as well as output surge on the up. However, they drew attention to one crucial nuance. The told that the future prosperity of British manufacturers solely depends on getting the Brexit deal. They also pointed to the overwhelming message from business to the British cabinet – to make progress, without going backwards.
As a matter of fact, the previous week UK Prime Minister Theresa May finally agreed a withdrawal pact with Brussels. The given document will provide the United Kingdom with a transition period for departing from the European bloc.
Nevertheless, the newly-achieved pact is strongly opposed by May's Conservative Party. That’s a definite sign that the pact might fail in the country’s parliament in the nearer future.
By the way, manufacturing accounts for nearly 10% of the overall economic output of the United Kingdom.
Additionally, UK retailers are on the verge of spending tens of millions of pounds to back a disorderly Brexit.
The RBA will make a rate statement on August 4 at 7:30 MT time.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.