Market expectations for Thursday/Friday

This Thursday, the U.S. will celebrate Independence Day, investors in Europe will focus on the European Central Bank decision to cut base rate or not. Most market participants do not expect interest to be cut, but it is expected that the M. Draghi (the president of ECB) will continue to highlight the main goal - to maintain low interest rates in the Euro zone.

 
On Wednesday primary producer confidence index of July in the Euro zone will be published. It is expected that it will remain the same as in May, and reach 48.6. This reflects market expectations that the greater part of manufacturers in the Euro zone still sees signs of market contraction.

Bank of England decisions

On Thursday, the Bank of England, as well as the ECB will announce a decision on the base interest rates. Market participants also expect that the base interest rate would be reduced, which currently stands at 0.50 percent. However, investors will closely monitor the press conference which will be held after the meeting. For the very first time, New England's central bank chief Mark Carney will speak publicly. He was the leader of Canada's central bank for more than five years.

U.S. expected labor market indicators

While the U.S. markets will be closed on Thursday - the country will be celebrating Independence Day - market participants wait for the first quarter U.S. macroeconomic data announced. Without a doubt, the most important of them will be published on Friday - the U.S. labor market data. Analysts believe that in June new jobs were created in the U.S., but slightly less than in the month of May, 165 thousand. And the unemployment rate was down from 7.6 percent. to 7.5 per cent. It is expected that these figures reflect the current U.S. Federal Reserve System (FED) position that the U.S. unemployment market is slowly recovering, and sooner or later the Fed should begin to reduce U.S. economic stimulation.