Focus of Wednesday's session was on Financial Stability Report. BOE Governor  Carney holding a press conference for the Financial Stability Report said yesterday  that additional risks to Eurozone could come due to Brexit and that fall in GBP since Brexit vote suggests markets expect modest real income growth, less open trade. According to him  consumers are drawing down savings and borrowing for first time since crisis, reinforcing indebtedness.

Thursday's session brought UK Manufacturing PMI figures. The upturn in the UK manufacturing sector extended into its fourth month running during November. Rates of expansion for output and new orders both remained solid, despite growth easing further from the highs reached in September. There were also signs that the weak exchange rate was having a continued sharp cost inflationary impact, leading to higher selling prices at the factory gate. The seasonally adjusted Markit/CIPS Purchasing Managers’ Index posted 53.4 in November, down further from September’s 27-month high, but above its long-run average of 51.5.

On Friday, from the UK, Construction PMI figures were released. November data indicated that the UK construction sector continued to rebound from the weak patch recorded on average during the third quarter of 2016. Business activity and incoming new work increased at the strongest pace since March, although both rates of expansion remained much softer than the peaks achieved at the start of 2014. Greater workloads underpinned a further solid rise in employment levels and input buying among construction firms. However, average cost burdens rose sharply, with the rate of inflation the steepest since April 2011. The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Indeks picked up slightly to 52.8 in November, from 52.6 in October, thereby signalling an expansion of total business activity for the third month running.

This week markets will be looking at:

Services PMI (Monday 10:30)

Industrial Production (Wednesday 10:30)