"It is meant as a strong warning: illegal annexation of territory and deliberate destabilization of a neighbouring sovereign country cannot be accepted in 21st century
Shortly after the EU announcement, the US upped its own sanctions against three top Russian banks, a ship builder and the energy sector.
The US sanctions, along with measures taken by the EU, "will have an even bigger bite" on the Russian economy, US President
"So far, the sanctions announced by the West have arguably not had the desired impact given that the Kremlin has continued to support the rebels in eastern
The news of the sanctions knocked major
This negative sentiment is set to roll into the
"A certain amount of the weakness seen ahead of the open can also be attributed to traders sitting on the side lines ahead of some major economic releases and the FOMC decision," says
The eurozone economic sentiment indicator is due at
The economic sentiment index is expected to edge down to 101.8 in July from June's reading of 102.0, while the business climate index is expected to come in at 0.20 in July after the 0.22 score in June. The consumer and industrial sentiment indices are forecast to come in at -8.4 and -4.5, respectively in July, having posted readings of -7.5 and -4.3, respectively in June. The service sentiment index, meanwhile, is forecast to rise to 4.4 in July from June's reading of 4.2.
Later on, the preliminary release of German consumer price inflation is due at
The German harmonised index of consumer prices, which is released at the same time, is forecast to increase 0.8% year-on-year in July, slower than the 1.0% rise in June. On a monthly basis, the HICP is expected to climb 0.3% in July following the 0.4% increase in June.
However, "data released during the first half of the European session may not do much to the markets, despite it containing some valuable information regarding confidence in different areas of the eurozone economy," says Erlam.
While the data should not be ignored, the fact that it comes after alternative confidence readings and ahead of a raft of top-tier macroeconomic data from the US, means that investor focus may be elsewhere.
"Aside from coming just before some major economic releases, these numbers are generally seen as lagging because they are released after other, more widely followed confidence readings, so in theory should already be priced in," Erlam says. That said, "if we see a big swing one way or another, they could get a reaction," he adds.
In the US, the latest ADP employment change report, which is widely regarded as a warm-up for the monthly non-farm payrolls on Friday, is released at
Shortly after, the initial estimate of US second quarter gross domestic product and personal consumption expenditures data are released at
"For some time now weíve heard all manner of speculation that the slowdown in the US economy seen in Q1 was an aberration, caused by the worst winter in living memory," says
"While this may well be true, the fact is that in the space of six weeks, expectations for Q1 growth went from a figure of 1% in April, to a contraction of 2.9%, in a matter of weeks, with no discernible effect on stock market valuations," Hewson adds.
Also of note, the US Federal Open Market Committee releases its latest monetary policy and asset purchase decisions after the
"The FOMC is unlikely to deliver any major surprises," says
Ahead of the
In a busy day in the corporate calendar,
Blue-chip Antogasta has released a second-quarter production update, while mid-cap
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