A brief look at last week and the week ahead, the Weekly Review from IG Index.
Last Week's Trading Highlights
After a sluggish opening day to start the week, the FTSE 100 began to add value at a healthy pace, extending beyond 5700 on Thursday, before tapering off again slightly on Friday.
The major macroeconomic focal point this week was the UK Budget, with Chancellor Alistair Darling aiming to garner political support for his party while simultaneously boosting the economy.
There was positive news in terms of the budget deficit, as government borrowing estimates for the financial year were revised downwards from £178 billion to £167 billion.
Mr Darling nevertheless re-emphasised his pledge to cut borrowing by half over the next four years.
Europe’s fiscal woes continued this week, as Greece’s central bank announced that economic output was expected to drop by 2% next year, worse than the previously estimated 1.2 - 1.7%. We also saw Portugal’s credit rating being downgraded from AA to AA- on Wednesday.
The Euro fell to a ten-month low against the Dollar on Thursday when it touched $1.333.
Back in the UK, economic data was generally upbeat: inflation stabilised at 3% in February, down from 3.5% the month before. Last month’s retail sales rebounded positively, showing a 2.1% rise month-on-month following January’s 3% decline and boosting the sector’s performance on the stock market.
Individual companies also fared well this week. On Thursday, retailer Next announced strong results for 2009, with pre-tax profit up to £505.3 million, an increase of 18% and better than the forecast figure of £495 million.
Kingfisher, the owner of DIY giant B&Q also beat expectations with a £547 million profit, up almost 50% on the previous year.
Adding to the upbeat week for retailers, Sainsbury’s reported a 3% rise in like-for-like sales over the last 12 months. Nevertheless, the supermarket’s chief executive sounded a note of caution, saying that the outlook for the coming year remains challenging.
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Weekly Trading Report 29 March 2010 - The Week Ahead
Indicators
The UK consumer comes into focus this week, with consumer credit figures on Monday followed by GfK’s latest confidence survey on Wednesday. Also, keep an eye out for Monday’s mortgage lending figures and Thursday’s manufacturing data.
Over the pond, analysts will be looking at the latest batch of employment data for a gauge on economic recovery, with the Challenger job-cut report on Thursday. This is followed by the all-important Non-farm figures on Friday.
Company Results and Reports
Company reporting is thin on the ground but look out for the mining and energy firms dominating early in the week.
Mid-caps Dana Petroleum and JKX Oil & Gas report full-year results on Monday and Tuesday respectively, followed by heavyweight miner Kazakhmys, also on Tuesday.
In what’s also a quiet week in the US, look out for Apollo Group’s second-quarter figures on Monday.
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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 29 March 2010', Review by D. Jones, last update: 29-Mar-10
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