UK Economy Expands by 0.3% | Positive German Economic Data Pushes Euro Higher
Published September 9, 2019
The UK economy has pushed aside recession worries with this morning’s GDP data for June, showing it has expanded 0.3%. The pound reversed earlier declines to jump on the US dollar in the midst of the surprise economic data. While this provides some hope that the economy is weathering Brexit uncertainty better than expected, the current confusion in British politics suggests that risks to the outlook will remain high for some time.
Germany has published better than projected economic news with its biggest trade surplus in four months. The foreign trade balance stood at 21.4 billion euros in July, up from 16.6 billion euros the previous month. Shipments abroad rose 0.7% from June, defying economist estimates for a decline.
Saudi Energy Minister Khalid Al-Falih was discharged over the weekend and replaced by Prince Abdulaziz bin Salman. Major changes to policy in the kingdom is not likely, as higher oil prices are still top of mind. OPEC and its allies are meeting later this week, with no change to current production curbs expected. West Texas Intermediate for October delivery is trading above $57.00 a barrel this morning.