European Stocks Rise as Markets Await Key U.S. Inflation Data 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
The British pound sterling curved a new 31 year low against the dollar today during the Asian trading hours as the pound dropped to 1.278, a low not seen since 1985. Investors are increasingly becoming nervous as post-referendum cracks have started appearing.
- Property stocks and share prices of Real Estate Investment Trusts (REITs) have declined sharply post-referendum and their recovery compared to the broader market have been bleak. Three major property trusts, Standard Life, M&A, and Aviva have halted withdrawal of clients’ money due to liquidity pressures.
- Reports from Markit economics show that PMIs for construction, manufacturing, and services have declined to multi-year low in June.
- Today another report shows that new car registrations in the UK declined in June as it dropped to -0.8 percent from a year back. This is first such decline since October.
- According to YouGov and Center for Economics and Business Research, business pessimism has almost doubled since the referendum.
- BRC shop price index declined 2 percent from a year back. Food prices suffered biggest decline in at least a year.
We expect, major impact of the referendum will be visible in July as the referendum was held in late June.
