Friday preview: Chequers, US China tariffs in focus
Investors' focus on Friday will be on whether the Prime Minister and her cabinet can thrash out an agreement on what sort of customs arrangement they pretend to extract from Brussels for after Brexit.
The stakes are exceedingly high for Britain and Theresa May as she heads to Chequers with her ministers, amid pressure from Brexiters, business, the less-Eurosceptic wing of the Tory party and perhaps even Europe.
According to Bloomberg, even after meeting the PM on Thursday, Chancellor Angela Merkel believed May's latest proposal was not "workable".
Likewise, the Daily Telegraph had reported earlier that Brexit Secretary David Davis was of a similar view, while the so-called European Research Group was warning that the Tories would be "toast" at the next elections if they "welched" on their Brexit commitments.
On that note, Kathleen Brooks, research director at Capital Index, said: "If Theresa May openly defies the Brexiteers they may do her in once and for all, and a leadership contest in this environment could be one of the most pound-negative events so far this year."
Also due out at the end of the week in Britain is a smattering of widely-followed survey results, including the Recruitment and Employment Confederation's Permanent Staff Placements Index and BDO's High Street Sales tracker for June.
Halifax house price data for June is also slated for release.
Yet at least over the next few weeks all of the above may get drowned out by the widely-expected US decision to levy tariffs on $34bn-worth of Chinese made goods starting from the stroke of midnight on Thursday, in Washington, and the potential fall-out in financial markets.
In the shadow of those two risk events, but nevertheless very important for markets too, will be the release of the monthly US non-farm payrolls report, for June.
Economists had penciled-in a print of 198,000, following a gain of 223,000 in May, with average hourly earnings seen up by 0.3% month-on-month and 2.8% higher year-on-year.
The rate of unemployment meanwhile was seen remaining steady at last month's level of 3.8%.
However, following recent survey findings - such as those from the ISM - there appeared to be increasing talk in markets that the ratcheting-up in trade tensions might already be impacting on companies' hiring decisions.
Commenting on that possibility, Brooks said: "The main risk to the June payrolls figure comes from Trump. If there are signs that corporate hiring is slowing down due to the US/ China trade spat then markets could have a harsh reaction.
"Already, [ADP] private sector payrolls for June have disappointed expectations, coming in at 177k, vs. 199k expected, the lowest level since April. Initial jobless claims also jumped above 321k last week."
In the euro area meanwhile, the focus will be on a report on German industrial production for May, following a blow-out reading on orders for factory goods for the same month - although export orders from outside the euro area were on the weak side.
French trade data for May are also due out, alongside a reading on Italian retail sales in May.
No UK-listed firms were scheduled to update markets on Friday.
Friday 6 July
INTERIM DIVIDEND PAYMENT DATE
Associated British Foods, Connect Group, Countryside Properties, Debenhams, Elegant Hotels Group , Renew Holdings, Shaftesbury
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
Industrial Production (GER) (07:00)
Non-Farm Payrolls (US) (13:30)
Unemployment Rate (US) (13:30)
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Helios Underwriting
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Capital Gearing Trust, Stobart Group Ltd., Urban Logistics Reit
UK ECONOMIC ANNOUNCEMENTS
Halifax House Price Index (08:30)
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Animalcare Group, Arrow Global Group, Balfour Beatty, Billington Holdings, Christie Group, Cineworld Group, Harvey Nash Group, Headlam Group, Helios Underwriting, Hydrogen Group, Judges Scientific, Learning Technologies Group , M&C Saatchi, Restore, S&U, SIG, Sopheon , Synthomer, Warehouse Reit