Morning bid: The consumer’s deep pockets and short arms

Morning bid: The consumer’s deep pockets and short arms

Summary :

The University of Michigan’s final consumer sentiment index reading for July is due, and likely stayed unchanged at 51.1.

While data on Friday made for grim reading, with the U.S. economy contracting in the second quarter and consumer spending growing at its slowest pace in two years, Treasury Secretary Janet Yellen pointed to broad strength in the economy, especially in jobs. In Europe, the focus will be on the eurozone’s second-quarter GDP numbers and CPI for July. This comes after German inflation edged up unexpectedly in July, driven by an energy supply crisis.

Key developments that should provide more direction to markets on Thursday:

Economic data – Eurozone Q2 GDP, U.S. Q2 employment cost index, personal income, June personal spending, France Q2 GDP and June consumer spending, Germany Q2 GDP and July unemployment data, UK Nationwide house price index, Spain flash July CPI & Q2 GDP

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