Yesterday, the FTSE 100 closed 0.4% higher, after the ECB cut interest rates by 25bps, which was widely expected. However, the central bank didn't change its outlook.

Today, the Confederation of British Industry (CBI) has upgraded its growth forecasts for the UK economy, predicting a 1% growth in 2024 and 1.9% in 2025, driven by increased consumer spending as inflation decreases and wages remain strong. This is an improvement from the previous forecasts of 0.8% and 1.6% growth for 2024 and 2025, respectively.

In corporate news, homebuilder Bellway raised its annual average selling price forecast, citing strong trading in the spring season and improved affordability.  Data from Halifax showed British house prices edged down by 0.1% in May from April, indicating market stabilization.

Italian cloud computing and cybersecurity services provider Wiit announced it has no plans to make a takeover offer for British IT services group Redcentric. Its shares fell 3.9%

Key economic data to watch today includes GDP and unemployment figures from the eurozone, industrial production and trade balance from Germany, and a house price index from the UK. But the big event today will be the release of nonfarm payrolls  data later in the day. If the job market remains too buoyant, the Fed is likely to consider that a rate cut is not needed in the near future.

Things to read today: