European economic data takes center stage on Friday, with investors in risk assets fearing old world pessimism will cloud the mood after the recent double jeopardy from the US, namely a higher employment rate. than expected and lower than expected inflation.
UK Q2 GDP data is due out at 0600 GMT, and the main question is whether the recession that the Bank of England predicts will start at the end of this year could come sooner.
A Reuters poll of analysts forecasts that UK GDP is expected to contract 0.3% in the second quarter, after growing 0.4% in the first three months of the year.
The pound was slightly weaker ahead of the $1.2193 data and 85 pence per euro, holding just above the two-and-a-half week low hit the previous day.
The industrial production of the euro zone and the United Kingdom, as well as the CPIs of France and Spain are also on the agenda. Little good news is expected for a continent struggling with rising energy prices and drought.
In Asia, markets were largely rested on Friday after a busy week.
MSCI’s broader index of shares in the Asia-Pacific region excluding Japan was flat and on track for a 1% weekly gain. Benchmark US 10-year yields dipped slightly by a few basis points and the dollar weakened after struggling earlier in the week.
An impending recession:
The main events that could influence the markets on Friday:
UK: June GDP Estimate (m/m)
UK: June Production Data, Trade Balance, Business Investment
France, Spain: CPI end of July
Eurozone: industrial production in June
United States: Import and Export Prices for July
United States: University of Michigan Confidence Index for August
