Wednesday, 20th June, 2018
Aside from the World Cup football, markets have been kept on edge by escalating trade tensions between the US and China, which have raised the risks of a full-blown trade war unfolding. We expect markets to remain jittery this week. Q1 GDP, due Thursday, is the local highlight this week and we expect a below consensus +0.4% qoq print. The second June dairy auction takes place overnight Tuesday, with the current account figures for Q1 on Wednesday. On Thursday, we expect the Bank of England to leave its interest rate and asset purchases unchanged at 0.50% and £435bn, respectively. Otherwise, it’s wall-to-wall football, but watch for trade and geopolitical risks.