Asian stock markets moved higher on Tuesday, led by Japan, as hopes of central bank support and the and a rebound oil prices underpinned markets. In India investors took profits after the RBI left rates unchanged and the Hang Seng also corrected slightly as property shares reach levels last seen ahead of the crash in 97. Released overnight, U.K. BRC retail sales came in much stronger than expected and rebounded strongly in July, against expectations for another contraction in sales. It appears that survey’s that predicted a decline in activity in the U.K. have yet to come to fruition.

The UK Trade Deficit Widened More than Expected in June

UK trade deficit widened to GBP 12.4 billion in June in the visible goods balance, up on the median forecast for GBP 11.1 billion. This is the biggest deficit since March last year and is reportedly the biggest deficit for the month of June on record. The May figure was also revised to GBP 11.5 billion from GBP 9.9 billion. The culprit for the deficit blowout in June was a big rise in the import tally, which came in at GBP 37.0 billion in the goods figure, well up on the exports figure of GBP 24.6 billion. The total imports figure for June was GBP 48.9 billion, which is the highest figure on record.

Spain, Portugal escaped budget fines. EU Finance Ministers confirmed that on the basis of the Commission’s recommendations they decided to cancel financial fines for Spain and Portugal and confirmed the new budgetary adjustment paths for both countries. At the same time though ministers agreed on a suspension of part of the commitments of the European Structural and Investment (ESI) Funds for 2017, with effective action from both countries a necessary condition to lift the suspension.