5.41pm BST

Most European markets ended the day higher, albeit not showing substantial gains as investors remained cautious ahead of any comments from Federal Reserve chair Janet Yellen about US interest rates in her speech on Friday.

But the FTSE 100 missed out, dragged down by mining shares after a fall in profits at Glencore.

5.12pm BST

French unemployment has fallen in July, but not quite as much as expected:

French Total Jobseekers (Jul) 3.507 Mln v 3.505 Mln exp, prev 3.526 Mln | Jobseekers Net Change (Jul) -19.1K v -20.5K exp, prev +5.4K

#French unemployment down 19,100 in July to 3.5066 million. Still damagingly high but has come down from Feb record high of 3.5910 million

4.32pm BST

Elsewhere, Iceland’s central bank has cut interest rates for the first time since December 2014, citing concerns about low inflation.

Reducing its key interest rate by 0.5 percentage points to 5.25%, the bank said:

The inflation outlook has improved since the Bank’s last forecast. If the exchange rate remains unchanged, the outlook is for inflation to remain below target until early 2017. According to the forecast, it will edge upwards when import prices stop declining and the effects of the currency appreciation subside. Inflation will rise more slowly than previously forecast, however, and will not be as high as was previously projected. If the exchange rate continues to rise, and other things being equal, inflation will be lower than is provided for in the baseline forecast…

Whether interest rates will be lowered further or need to be raised again will depend on economic developments and on the success of the capital account liberalisation process.

4.09pm BST

The recent signs that the UK economy is – so far – holding up after the Brexit vote continue to support the pound.

Sterling is now at a three week high against the dollar, up 0.35% at $1.3235, while it has climbed 0.8% against the euro to €1.1762.

3.58pm BST

Joshua Mahony, market analyst at IG, said:

Crude prices took a knock today as the US posted its fourth inventories build-up in five weeks. Despite being in so-called driving season, the build-up of surplus oil means that domestic demand is not keeping up with supply, which has become increasingly reliant upon international imports as output falls.

3.57pm BST

On the oil price, David Morrison, senior market strategist at Spreadco, said:

The EIA reported a 2.5 million barrel build in crude stocks against expectations of a 500,000 drawdown. WTI and Brent slumped on the report which was consistent with last night’s American Petroleum Institute release…

Crude oil has been amongst the most volatile markets this week as investors prepare themselves for Janet Yellen’s speech on Friday at the Jackson Hole Economic Symposium

3.51pm BST

Brent crude has fallen 1.7% to $49.09 a barrel following the unexpected rise in US oil stocks. West Texas Intermediate – the US benchmark – is down 2.6% at $46.91.

3.35pm BST

Oil prices are under pressure again after a surprise rise in US crude stocks, suggesting lack of demand and excess supply.

Weekly crude stocks rose 2.5m barrels to 523.59m, compared to expectations of a 0.5m fall, according to the Energy Information Administration.

3.14pm BST

Another factor for the Federal Reserve to consider when contemplating an interest rate rise.

US existing home sale fell by a higher than expected 3.2% to an annualised 5.39m units in July, according to the National Association of Realtors. Analysts had expected a smaller dip to 5.51m. The association said:

Lawrence Yun, NAR chief economist, says existing sales fell off track in July after steadily climbing the last four months. “Severely restrained inventory and the tightening grip it’s putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month,” he said. “Realtors are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows.”

2.57pm BST

A Bank of England bond buying programme for medium term gilts has seen increased demand. The Bank received offers worth 3.1 times the number it wanted to buy of 7 to 15 year gilts. Last week the figure was 2.85 times.

In other words the Bank received total offers of £3.625bn and accepted £1.169bn.

2.52pm BST

It may be a couple of days until Janet Yellen, the chair of the US Federal Reserve, makes her speech at the Jackson Hole symposium but investors remain cautious ahead of the event.

On Wall Street, the Dow Jones Industrial Average has dipped 20 points or 0.11% in early trading, while the S&P 500 and Nasdaq Composite have both opened marginally lower.

2.23pm BST

Here is our full story on the Scottish government’s spending and earnings figures for 2015-16:

Related: Scottish finances worsen as fall in oil revenues leads to £15bn deficit

2.21pm BST

The Government Expenditure and Revenue Scotland (Gers) figures showed that during 2015-16 the country’s tax receipts were £400 less than the UK average at £10,000, after several decades during which oil had pushed Scottish tax receipts above the UK level.

The gap between Scottish tax revenues and spending had also grown sharply, Gers revealed.

2.20pm BST

Nicola Sturgeon, Scotland’s First Minister, has commented on the Scottish public finances data published this morning.

She said the figures – which showed Scotland’s North Sea revenues fell 97% in 2015-16 to just £60m – were difficult and the drop in oil prices meant Scotland had “suffered an economic shock which has had an impact on our fiscal position”.

It is a challenge we have had for some time now – how to grow and diversify our onshore economy.

I accept Scotland faces, whatever our constitutional arrangements, a very challenging fiscal position [but] the fundamentals of our economy are strong.

2.07pm BST

Mickey Levy, chief US and Asia economist at German bank Berenberg, has some personal insight to offer on Jackson Hole.

He attended the meeting every year for 23 years with his last one in 2013 and says the media is missing the point by focusing on Yellen’s speech and the timing of the next US rate rise.

The purpose of the symposium is to get leading monetary policymakers to focus on and discuss specific broader issues critical to the conduct of monetary policy.

It is not designed to focus on the next FOMC meeting or the timing of Fed policy changes, but that’s what the media who cover the event hype, so that’s what will be reported.

Nearly a year before every meeting, the Federal Reserve Bank of Kansas City picks a topic and a handful of academics to prepare serious research papers.

At the symposium, the papers are presented at panels chaired by leading global central bankers (including Fed members) and each paper is critiqued by formal discussants. Symposium participants are then able to ask questions and make comments.

The Fed Chair gives the opening remarks at the symposium on Friday morning, 8am Mountain Time (10am Eastern Time). There is no Q&A session following the Chair’s presentation. Often, the Chair’s presentation covers the general topic of the papers that are being presented.

The last panel of the symposium, late Saturday morning, will involve four leading central bankers and policymakers commenting and discussing more current issues facing monetary policy. This will include a Fed member and an ECB member.

1.39pm BST

US traders are treading water as they await the annual meeting of central bankers in Jackson Hole, Wyoming.

1.08pm BST

Wall Street is expected to open modestly higher:

US Opening Calls:#DOW 18556 +0.03%#SPX 2188 +0.06%#NASDAQ 4820 +0.06%#IGOpeningCall

12.37pm BST

The FTSE 100 is lagging other European indices, down -0.2% or 10 points at 6,858.

The FTSE is being dragged lower by the mining companies, which have been hit by the sliding price of oil and other commodities.

12.23pm BST

Returning to Scotland and the 97% drop in North Sea revenue in 2015-16…

The figures were published as part of the Government Expenditure & Revenue Scotland 2015-16.

SNP independence blueprint forecast North Sea oil revenues would be just shy of £8 billion by 2015/16. Actual figure: £60m. Oooops.

11.48am BST

Oil prices are down following an unexpected increase in US crude stocks. The rise in stocks has revived fears over a supply glut.

Brent crude is down 1% or 52 cents at $49.46 a barrel, after touching an intraday low of $49.07.

11.30am BST

The pound is rising, up 0.3% against the dollar at $1.3230. It is up 0.5% against the euro, at €1.1728.

Related: UK economic indicators defy Brexit fears

10.57am BST

The Scottish government’s North Sea revenues collapsed in 2015-16 to just £60m from £1.8bn a year earlier.

As the graphic below shows, it is a far cry from the rewards reaped by Scotland in 2008-09, when North Sea revenues were £11.6bn.

2) Scottish north sea oil & gas revenues have plunged due to lowest exploration activity for 45 years. https://t.co/1qAkDEVBIR … #indyref2

Scotland’s deficit ‘almost £15bn’ as North Sea oil revenue share falls 97% in one year https://t.co/Z3kipdTQ0k

10.19am BST

My colleague Sean Farrell has obtained the memo sent by Lloyds boss António Horta-Osório to the bank’s staff.

Having returned to work I wanted to use the opportunity to address the recent media coverage of my private life.

As you may have read, my expenses were reviewed in light of speculation by certain newspapers and the Group has confirmed that they are fully compliant. As you’d expect, I pay for my personal expenses whilst away and only reclaim what is a business expense.

10.05am BST

Howard Archer, chief UK economist at IHS Global Insight, believes UK house prices will fall in 2016 and 2017 as greater uncertainty surrounding Brexit creeps in.

We suspect that house prices could ease back by around 3% over the latter months of 2016 and there could well be a further 5% drop in 2017.

We believe housing market activity is likely to be limited over the coming months and prices will weaken as heightened uncertainty following the UK’s vote to leave the EU weighs down on consumer confidence and willingness to engage in major transactions, and also hampers economic activity.

10.01am BST

Samuel Tombs, chief UK economist at Pantheon Macroeconomics has a different interpretation of the BBA figures, arguing there are clear signs that Brexit is weighing on consumers’ minds.

July’s mortgage approvals data bring clear evidence that the Brexit vote has made households reluctant to undertake major financial commitments.

Following a 5% month-to-month fall in June, approvals fell a further 5.3% in July, leaving them at their lowest since January 2015 and down 19% year-over-year.

9.57am BST

The BBA’s July data are the first set of borrowing figures since the Brexit vote on 23 June.

Rebecca Harding, BBA chief economist, says despite the drop in mortgage approvals the figures overall suggest the impact of the vote has had little negative impact so far.

The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum.

We are also clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong consumer credit growth.

9.43am BST

Britain’s high-street banks approved the fewest mortgages since January 2015 in July.

Mortgage approvals for house purchase (excluding remortgages) fell 19% last month compared with a year earlier, to 37,662 according to the British Bankers Association.

9.29am BST

Antonio Horta-Osorio, the chief executive of Lloyds Banking Group, is expected to apologise to staff today following allegations that he had an affair with a senior academic.

The married father of three is expected to send a message to the bank’s 75,000 staff expressing “deep regret” for any embarrassment and reputational damage to the bank.

9.21am BST

At 9.30 the Scottish government will publish figures that are expected to show a sharp decline in tax revenues from the oil and gas sector, following the drop in oil prices.

Opponents of Nicola Sturgeon and Scottish independence are likely to jump on any weakness in the figures as a reason why Scotland’s economic future would be more secure as part of the UK.

9.10am BST

The pound is roughly unchanged this morning, down 0.1% against the dollar at $1.3182.

It’s a similar story against the euro, with the pound down 0.01% €1.1671.

9.04am BST

WPP is the FTSE 100’s top riser this morning after the world’s largest advertising group said full-year revenue was likely to grow more than previously expected.

The top of the table this morning:

8.51am BST

Here is our full story on WPP’s better-than-expected first-half results:

Related: WPP’s profits rise 10% but UK growth slows over Brexit worries

8.38am BST

Europe’s major markets are down in early trading:

8.23am BST

Sir Martin Sorrell, chief executive of the world’s largest advertising group WPP, says he is still worried about the potential fallout from the Brexit vote.

It’s very early days. What we did see from April to June was caution in front of the vote. What we saw after the vote in July was the UK perking up a bit. But that begs the question as to what the UK would have done in the absence of a Brexit vote or if the vote had gone the other way.

We still worry. Business wants certainty. The government wants the best negotiating position with the EU and the two are actually in conflict. We would like a quick clean solution from a business point of view but the government needs a little bit of scope and time for negotiation. So there is going to be a considerable degree of uncertainty in the future.

7.58am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Official data has confirmed the German economy slowed in the second quarter, when GDP increased by 0.4%.

Private consumption should remain an important growth driver on the back of low inflation, low interest rates, low unemployment and higher wages.

In addition, at least in the short run, the refugee crisis will continue to support domestic demand and the construction sector should rebound quickly after the technical correction on the second quarter.

Continue reading…