Here are the top five things you need to know in financial markets on Friday, July 22:
1. U.K. business activity slumps to 7-year low post-Brexit
Business activity in the U.K. contracted at the steepest pace since early-2009 in July in the wake of Britain’s decision to leave the European Union, known as a Brexit.
The data released on Friday pointed to a possible third quarter recession in the British economy, with Markit chief economist Chris Williamson suggesting that the Bank of England would have to take action.
2. Euro zone business growing at weakest rate since start of 2015, U.S. on tap
The euro area composite purchasing managers’ index (PMI) for July also took a hit from Brexit worries, falling to an 18-month low.
Markit will release its preliminary July manufacturing PMI for the U.S. on Friday at 13:45GMT, or 9:45AM ET, in the day’s only major data point stateside.
3. G20 finance ministers and central bankers head to China
Finance ministers and central bank chiefs were heading to Chengdu China for the G20 meeting over the weekend.
The spotlight is likely to be centered on Britain's new Chancellor of the Exchequer, Philip Hammond, who makes his international debut at the gathering and will need to answer questions about how the U.K. will manage its exit from Europe.
4. Global stocks follow Wall Street lower
Shares in Asia slid on Friday after weak earnings in the U.S. halted Wall Street’s record run.
European stocks were lower Friday as market participants continued to digest the European Central Bank’s decision to hold on monetary policy and reacted to the PMI data.
U.S. futures pointed to a slightly higher open on Friday, after weak earnings brought the Dow’s nine-day winning streak to an end in the prior session. At 9:54AM GMT, or 5:54AM ET, the blue-chip Dow futures gained 22 points, or 0.12%, S&P 500 futures rose 3 points, or 0.15%, and the Nasdaq 100 futures traded up 8 points, or 0.18%.
5. Oil mixed on continued concern over the supply glut
Oil showed mixed trade on Friday as data throughout the week showed U.S. inventories still at record highs even as Iraq continues to pump up output.
Investors looked ahead to oilfield services provider Baker Hughes’ data later in the day that will gauge the ongoing recovery in U.S. drilling activity.
The prior release last Friday showed that the number of rigs drilling for oil in the U.S. increased by six last week to 357, the third straight weekly rise and the sixth increase in seven weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
U.S. crude oil futures slipped 0.13% to $44.69 at 9:55AM GMT, or 5:55AM ET, while Brent oil edged forward 0.17% to $46.28.