German ZEW survey shows pick up in recovery mood in July Eurozone banks tighten lending standards further as geopolitical risks weigh on credit conditions Trouble already for Burnham in his first policy announcement?
Iran says any decision to reopen the Strait of Hormuz depends on security considerations FX option expiries for 21 July 10am New York cut UK unemployment rate holds steady in May, payrolls decline again in June UK prime minister Burnham announces VAT cut from energy bills to bring down cost of living Markets remain tense on the week as US-Iran tensions stay heightened It was a pretty calm session with limited data and news flow
The main highlight was the UK employment report which showed some resilience in the three months to May, with the unemployment rate holding at 4.9% and employment rising by 147,000. Total pay growth eased to 4.3%, suggesting wage pressures continue to moderate. The market reaction was muted given that the data didn’t change anything in terms of interest rate expectations.
Iran said that any decision to reopen the Strait of Hormuz will depend on security conditions, offering no timeline for restoring normal shipping through the waterway. Tehran will keep the strait closed at least until a potential ceasefire is secured. The German ZEW economic sentiment index surged to 26.3 from 10.5, well above forecasts, reflecting growing optimism that the government’s reform agenda will support the recovery.