What to watch

The focus today will be how markets react after the US gets back into the office following the huge moves seen on Friday and partial retracement yesterday when most Americans were out of the office for Independence Day.

• In terms of scheduled events, this morning the focus will be on the final European service PMI prints including first reads from Spain and Italy.
• We will also receive the Bank of England Financial Stability Report - but this usually doesn't have a huge amount in it that will have a big impact on monetary policy. It will be worth watching in case there are any surprises, however.
• The afternoon session will see the final print of durable goods as well as US factory orders.
• In terms of speakers today there are no big names scheduled from the Fed and ECB. From the BOE we have the press conference following the FSR and we will also have the MPC's Tenreyro appearing on a panel on monetary and fiscal policy interactions. Finally we also have a couple of public appearances from Riksbank's Breman - one imminently and the other at 13:00BST/14:00CET.