Manufacturing data will be the theme of the day for financial markets on Tuesday as traders assess the outlook for the global economy at the end of the second quarter.
Purchasing managers' indices (PMIs) from China, the UK, Eurozone and US are scheduled for release during the session, all of which are forecast to show that manufacturing activity continued to grow in each region in June, albeit at varying rates.
In the UK, Tuesday will also see the release of the records of the Financial Policy Committee's (FPC) June 17th meeting, at which policymakers proposed to cap riskier mortgage lending in a bid to cool the UK housing market. Bank of England Governor Mark Carney announced last week that from October banks will not be allowed to lend more than 15% of their residential mortgages with loan-to-income ratios at over 4.5 times.
A policy decision from the Reserve Bank of Australia (RBA) due out before UK markets open will also be in focus given the recent string of weak economic data which is expected to see the central bank become more cautious.
While markets expect the RBA to leaves rates on hold at a record-low 2.5%, analysts at Bank of America Merrill Lynch said they predict "subtle changes to its communications" at the meeting.
They said: "There is scope for shifts in language to convey a somewhat less optimistic tone [than the last meeting]. In our view, this may occur as the activity data flow softens over coming months."
On the corporate front St.Modwen's, the property regeneration specialist, will become the first property company to update investors this week.
In particular, it will be the first to do so in the aftermath of recently heightened speculation regarding a first increase in Bank Rate. Nevertheless, some analysts at least seem relatively sanguine given its gearing to the economic recovery.
Shares in the firm are now sitting just atop their so-called [by technical analysts] 200-day moving average.
Tuesday July 01
St. Modwen Properties
INTERIM DIVIDEND PAYMENT DATE
Bellway, Victrex plc
QUARTERLY EX-DIVIDEND DATE
JP Morgan Chase & Co
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Auto Sales (US) (15:00)
Construction Spending (US) (15:00)
ISM Manufacturing (US) (15:00)
ISM Prices Paid (US) (15:00)
PMI Manufacturing (EU) (09:00)
PMI Manufacturing (GER) (08:55)
Unemployment Rate (EU) (10:00)
Unemployment Rate (GER) (08:55)
Hummingbird Resources, Volex
Hayward Tyler Group
African Potash Ltd, Central Rand Gold Ltd, Investec Structured Products Calculus VCT, Sierra Rutile Ltd
UK ECONOMIC ANNOUNCEMENTS
PMI Manufacturing (09:30)
FINAL DIVIDEND PAYMENT DATE
BlackRock Emerging Europe, Bunzl, Headlam Group, Rolls-Royce Holdings