UK's Credit Rating Downgraded

Industrial profits in China increased modestly in May at a slower than expected pace from a month ago. According to data from the National Bureau of Statistics released on Monday, China's industrial profits grew at a pace of 3.70% from a year ago, to an aggregated 537.2 billion CNY. This was below April's increase of 4.20%. State owned firms saw industrial profits falling -7.30% but private firms offset the decline for the headline figure, with profits rising 9.40% from January through May.

 

A preliminary or flash services PMI released by Markit’s survey in the US showed that activity was subdued in June and hinting at a potential slowdown in the economy's retail and services sector. Flash services PMI for June was recorded at 51.3, unchanged from May but still showing an expansion in the sector. Participants in the PMI survey said that relatively subdued demand continued to weigh on the activity in June. The participants also said that there was heightened uncertainty and risk aversion among clients. The US services sector is one of the strongest contributors to the net GDP in the economy and has been affected by the upcoming elections.