Equities lose out

Equities markets broke their recent winning streak yesterday with European indices posting small loses for the day. US indices, which had closed just marginally lower on Tuesday, lost further ground with the S&P down 0.2% yesterday. It was fairly quiet on the currency front with euro-sterling rate hovering around the 89p level it’s been at since the start of the week while against the dollar the euro is down a touch but still around $1.13

There was a renewed fall in US treasury yields following weaker inflation data. 2-year yields shaved off 5bps yesterday taking them back below 1.9%. It was quieter for core European yields which saw only very small changes on the day

US inflation data was very slightly weaker than expected with the headline annual rate coming in at 1.8% in May (against a 1.9% consensus forecast). Just a small miss, but markets searching for any signs that might push the Fed down the road of changing policy

Oil prices increased this morning following news of damage to two oil tankers in the Gulf of Oman in a suspected attack. Several Saudi oil tankers were also sabotaged last month and this latest incident is raising fears of a disruption to crude supplies

Data due today includes euro area industrial production, US initial jobless claims and Irish inflation and residential property prices. Also on the slate is the first round ballot of the Conservative leadership election, with the result due at around lunchtime