Focus on political fallout and economic implications for the UK and EU – Danske Bank

Research Team at Danske Bank, suggests that the overarching focus in the market will be on the political fallout and economic implications for the UK but also more widely in EU from the Brexit vote last Thursday.

Key Quotes

“Spain will also focus on the prospects of forming a new government following Sunday's election, where traditional parties gained seats.

In terms of data releases, we get data on the euro area money supply developments for May on Monday including the bank lending to the private sector. The number is a key indicator of the effectiveness of the ECB's monetary policy initiatives including the TLTRO-II.

In the US there are several data releases next week but all are from before the UK's decision to leave the EU. We get the preliminary Markit PMI service index for June today.”