It will be a quiet day of financial news on Friday with no major corporate announcements due and just a few bits of economic data.
The UK public finances report from the Office for National Statistics will be released, showing the country’s deficit for May.
In April, UK government borrowing came in at £5.8bn, starting off the 2019-20 financial year with nearly the same deficit level as a year ago.
In the 2018-2019 financial year, borrowing came to £23.5bn, slightly worse than the £22.8bn that the Office for Budget Responsibility predicted the March spring statement.
For May, economists expect borrowing to fall to £4.2bn.
The OBR estimates the deficit will rise to £29.3bn next year before falling over the next four years, helped by stronger tax receipts and lower spending on debt interest.
Hardline Brexiter Boris seen as bad for the pound
Meanwhile, the leadership contest could move the pound. Hardline Brexiter Boris Johnson is pegged to become the next prime minister and analysts have warned that this could spell trouble for sterling.
He has vowed to take the UK out of the European Union by October 31 regardless of whether a deal has been agreed with the bloc.
Johnson, however, was recently seen to have softened his tone on Brexit by saying it he wanted to avoid leaving the EU without a deal during a televised debate this week.
But he added that the current Brexit deadline was “eminently feasible”.
The winner of the leadership battle is expected to be announced the week beginning July 22.
Across the pond, US data including manufacturing and services purchasing managers’ index reports from Markit and existing home sales from the National Association of Realtors.
Announcements due:
AGMs: Xtract Resources PLC (LON:XTR)
Economic data: UK public sector finances; CBI industrial trends survey; US existing home sales