THE kickoff of the Brazil World Cup heralds a month of comradery, patriotism and increased beer-swilling.

This inevitably means softer market conditions, as the football crazy nations are distracted from day to day activities, focussed only on the beautiful game.
“They think it’s all over…it is now!”

Another interest rate cut from the European Central Bank (ECB) last week was well received… for the time being. A meagre 10 basis points took the rate down to 0.15%, however this was coupled with a negative deposit rate decrease to 0.1% and another €400 billion made available to boost spending and growth.

I recall when the UK was in deep crisis, the British Bankers Association reported that there was more savers money on deposit than ever before. People became scared to take risks and wanted hold onto their funds for that very rainy day, or ‘can’t miss’ opportunity.

Perhaps the negative deposit rates in Europe will drive a summer spending spree from the frugal savers there? I imagine Spain will benefit if this happens!

This week:


Monday 9.30am Industrial Production Apr previous -0.1% m/m
Monday 9.30am Manufacturing Production Apr previous 0.5% m/m
Wednesday 9.30am Claimant Count Change May previous -25k
Wednesday 9.30am Unemployment Rate Apr previous 6.8%
Thursday 12.01am RICS Housing Survey May previous 54%


Monday 9.30am Sentix Investor Confidence Jun previous 12.8
Thursday 10am EU Industrial Production Apr previous -0.1% y/y
Friday 7am German Consumer Price Inflation May previous 1.3% y/y
Friday 10am EU Trade Balance Apr previous €17.1bn


Thursday 1.30pm Retail Sales May previous 0.1% m/m
Friday 2.55pm Michigan Consumer Sentiment Index Jun previous 81.9

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