Brexit drives the decline in UK construction activity
Uncertainty in the United Kingdom’s economy, due to the recent Brexit vote, drove a fall in the construction sector. The United Kingdom’s construction PMI (purchasing managers’ index) came in at 46 for June—compared to 51.2 in the previous month and below the Market consensus of 50.5. It’s the first time that the United Kingdom’s construction PMI released below 50 since 2013. A fall in construction activity was observed in the residential and commercial sectors in June. The First Trust United Kingdom AlphaDEX (FKU) is expected to open trading on a weaker note.
Producer prices decline in the Eurozone
Producer prices in the Eurozone (DBEU)(EZU) fell by 3.9% for May on an annual basis. The contraction was 4.4% in April—compared to an expected fall of 4.1%. On a monthly basis, the producer price index increased by 0.6% in May—higher than expectations of 0.3% growth and a decline of 0.3% in the previous month.
Turkish inflation rose in June
Consumer prices in Turkey rose by 7.5% on an annual basis in June—compared to a rise of 6.6% in the previous month. On a monthly basis, the inflation level rose 0.47% in June—compared to a 0.58% increase last month. An increase in food and transportation prices drove the price rise—inflation reached its highest level since February. The iShares MSCI Turkey ETF (TUR) and the iShares Europe ETF (IEV) are expected to weaken over the course of the week.