httpvh://www.youtube.com/watch?v=3YhBlz4qVbE

The big news of yesterday was the UK retail sales surge at about three times faster than was expected in July at 1.1%. This was well above the predictions which were aiming at a 0.4% rise. There was also a rise in corporate tax receipts which cut borrowing sharply, as well as better-than-expected factory orders. All this suggests that the UK recovery remains strong and also saw sterling jump a full percent against dollar and half a cent against euro.

Germany economic growth is set to hit 3% as Central Bank revised their 2010 forecasts, apparently Europe’s largest economy is generating its own momentum and they are hoping for ripple effects across other eurozone countries. The EU has said that the measures the Greek government have taken to reduce their budget deficit ‘appear sufficient’ to meet this year’s goal. This is apparently based on the provision that government-spending remains tight. However they have also released part of the second bail-out amount of EUR9bn worth of eurozone loans. Bank of Scotland announced that they are to quit Ireland and should be out by December, this decision was made after Lloyds announced 90% of the Irish commercial property loan book was now impaired.

Yesterday was a tough day for US data with jobless claims reaching the half a million point, which is a nine month high and an increase of 12,000. Analysts were expecting a dip with these results and so were surprised. More negative news came out later in the day with the Fed Reserve Bank of Philadelphia showed a further surprise decline in manufacturing in that area, with orders, shipments and employment weakening. US stocks fell to their lowest in almost a month yesterday on the back of this data, as it highlighted the concerns over the economy being stuck in a ditch. The general market attitude is fairly bearish thanks to the last month and a half of negative data.

After the excitement of yesterday there is absolutely nothing happening today of any note release wise, so you can focus on your weekend!