The PMI data for the UK has been revealed to be weaker than expected, which contributes to the current caution among investors. This is comparable to the previous readings for the euro area, which raises doubts about the determination of the BOE, especially as the interest rate has been unexpectedly increased by 50 basis points just a day prior.
Traders dealing with the British pound were already concerned that the bold approach being taken could harm the economy, and the negative performance seen in the latter stages of the second quarter offers no comfort. This uncertainty will likely persist as the market anticipates the upcoming US trading session, with bond yields currently remaining low.
The 10-year Treasury yields have decreased by 7 basis points to 3.728%, and US futures are displaying a more defensive stance. Currently, S&P 500 futures have dropped 19 points, indicating a decline of 0.4%. Although the European indices initially experienced jitters, they are gradually recovering. The Eurostoxx is down by 0.4%, DAX by 0.6%, CAC 40 by 0.3%, and UK FTSE by 0.2% compared to earlier losses of 0.6% to 0.9%.
