Market themes of the Day: UK retail sales headline

What you need to know before markets open
In Europe

• The German GDP rose 0.5% Q/Q in the second quarter this year.
• German investors sentiment indicator from ZEW Institute accelerated to -13.7 in August, up from -24.7 in July.
• The Eurozone Q2 GDP rose 0.3% Q/Q while increasing 2.1% y/y.
• The Eurozone industrial production is expected to fall -0.7% m/m while increasing 2.5% y/y.

In the UK

• The UK inflation accelerated to 2.5% y/y in July with core inflation remaining stagnant at 1.9% y/y, in line with the market expectations. For details read my Analysis here.
• The UK retail sales are expected to increase 0.2% in July with core retail sales stripping the basket off motor fuel sales rising 0.1% m/m. For more details read my Preview here. 

In the US

• The core US retail sales doubled the expectations rising 0.6% m/m while the control group retail sales expanded by 0.5% m/m in July. 
• The US non-farm business sector productivity rose 2.9% Q/Q annualized while labor cost increased 1.9%. 
• The US and China are set to resume trade talks in late August.
• The US building permits are expected to pick up rising 1.4% m/m in July and housing starts accelerate the growth rate to 7.4% m/m after slumping in June.

In Australia

• Australian employment report saw the total number of new jobs falling by 3.9K with the unemployment rate dropping to 5.3%.