A brief look at last week and the week ahead, the Weekly Review from IG Index.
Last Week's Trading Highlights
Fresh economic and political concerns saw financial markets stall last week, with the FTSE struggling to generate any worthwhile momentum to ease away from the 5600 level.
The week began with the BCC downgrading its 2011 GDP forecast from 2.3% to 2.1%, arguing that the obstacles to a prolonged recovery now 'appear greater'.
On Wednesday the NIESR said the UK economy was still growing slowly, at just +0.3% for December to February against the previous quarter.
Economic recovery hopes featured in early election debating, with the Prime Minister admitting there will be 'bumps' ahead. The PM also set the Budget for 24 March.
The precarious nature of the UK's emergence from recession was confirmed by Tuesday's weaker-than-expected January industrial and manufacturing surveys.
Compared with December, the former fell by 0.4% and the latter by 0.9%. However, when compared year-on-year, industrial production output increased by 1%, while manufacturing output grew over three months for the first time in two years.
The UK's retail sales figures for February rebounded sharply following January's disappointing data, with like-for-like sales up 2.2% compared to a year ago.
However, the BRC's comment that the results 'are not that strong' tempered any optimism.
On Tuesday the UK's trade deficit grew unexpectedly after exports dropped off, reaching £3.8 billion, the largest it’s been since August 2008.
A generally positive set of earnings results through the week from the housing, financial and retail sectors failed to give UK financial markets a lift.
On Monday Bovis Homes announced an annual £4.8 million profit for 2009, beating 2008’s £78.7 million loss, although sales remained low.
On Wednesday the nationalised bank Northern Rock said it had made 'good progress', confirming a much-reduced loss for 2009 of £257.4 million. In 2008 the bank reported a £1.36 billion loss.
In retailing, both supermarket chain Morrisons and department store John Lewis reported annual pre-tax profit rises year-on-year, at 30% and 9.7% respectively.
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Weekly Trading Report 15 March 2010 - The Week Ahead
Indicators
On Tuesday the MPC releases minutes from its latest interest-rate meeting earlier this month. Analysts will be closely reviewing how the decision was made following fears of a double-dip recession.
The focus then shifts to the UK's unemployment numbers on Wednesday to gauge the latest condition of the economic recovery.
Across the pond, keep an eye out for Tuesday's housing data, followed by Thursday’s inflation figures.
Company Results and Reports
It's a relatively quiet week for company reporting, but look out for blue-chip security services provider G4S with full-year results on Tuesday. This is followed by high-street fashion chain French Connection on Wednesday and baker Greggs on Thursday.
In the US, sports giant Nike and logistics specialist FedEx reveal Q3 results on Wednesday and Thursday respectively.
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For previous weeks see below.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'Financial Spread Betting 15 March 2010', Review by D. Jones, last update: 15-Mar-10
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