📆 Friday, July 21
► Market reactions were mixed following disappointing earnings and indications of US and UK economic strength which may support the case for further interest-rate increases.
► Technology shares in Europe, led by SAP, declined following underwhelming sales reports. Bioprocessing company Lonza Group also slipped due to a reduced 2023 forecast. Overall, earnings in Europe have been disappointing with only larger companies showing strong profits.
► UK retail sales volumes rose by 0.7% in June, surpassing the 0.2% expectation, with increases across all main sectors except automotive fuel; food stores and non-food stores sales primarily drove this growth, contributing 0.3% and 0.4% respectively, while non-store retailing and fuel sales remained unchanged.
► Signs of economic resilience in the US and UK led to investor uncertainty over the end of central bank rate tightening campaigns. Rising UK retail sales and a pullback in US jobless claims indicated potential for further rate hikes.
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