The crisis in
"For a while now we’ve been waiting for that next major catalyst that can either provide a boost for the next leg higher in indices or bring about a long-overdue correction, and it looks like the latter may have won the race," says
Describing the situation as "alarming" and saying there has been a "clear structural breakdown" in
"The only question now is whether the situation in
Ahead of the
Negative sentiment is set to roll into the
In the forex market, the pound moved higher against its major rivals overnight after
In a speech at a Mansion House dinner, Carney said that "there's already great speculation about the exact timing of the first rate hike, and this decision is becoming more balanced." However, "the decision would be dependent on data and is not a pre-set course," he added.
There remains more spare capacity in the economy that would need to be used up first, Carney said.
"If that’s his way of reassuring
Meanwhile, the yen fell against its key rivals overnight after the
The currency moved even lower shortly after, as Japanese industrial production was revised to show a steeper decline in April. Industrial output declined 2.8% on month in April, a faster rate of decline than the preliminary estimate of a 2.5% fall. In March, production rose 0.7%. On a year-on-year basis, industrial output rose by a revised 3.8%, down from the preliminary estimate of a 4.1% rise. This follows the 6.4% increase in March.
In data just released, Chinese retail sales rose 12.5% year-on-year in May, following an increase of 11.9% in April, and beating economists' expectations of a more modest rise to 12.1%.
The country's industrial production figure rose to 8.8% year-on-year in May, from 8.7% in the previous month, as expected.
This is "hopefully a good sign that the economy is turning around and can have a much better second half of the year," says Erlam. "There's been plenty of concern that the country is slowing at a faster rate than intended and could face a hard landing. The latest data would suggest otherwise," he adds.
Also just released, German consumer price inflation came in as expected at 0.9% year-on-year in May, down from the 1.3% posted in April. It fell 0.1% month-on-month, following a 0.2% fall in April.
Ahead of the
Still to come in the data calendar Friday, Spanish and Italian consumer price inflation figures are released at
In the US, producer price inflation is published at
In corporate news, AIM All-Share index- listed
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