A brief look at last week and the week ahead, the Weekly Review from IG Index.
Weekly Trading Report 5 April 2010 - Last Week's Trading Highlights
It was an up-and-down week for the FTSE on the back of some mixed economic data.
On Tuesday the ONS adjusted the UK's fourth-quarter economic growth up from 0.3% to 0.4%. The CBI has said UK financial services can expect faster growth in the next quarter, although up to 17,000 jobs could be lost within the sector.
This came after the BoE reported on Monday that mortgage approvals fell for a third consecutive month in February, while Nationwide’s survey on Tuesday reported that house prices rose by 0.7% in March – a slower pace than in February.
Thursday’s positive PMI data – the best monthly manufacturing growth figure for 15 years – helped lift sentiment slightly before the FTSE closed for the Easter break.
On Wednesday, US factory orders showed a 0.6% rise in February, reaffirming the assertion that manufacturers are driving the US recovery.
However, private sector employment data also released on Wednesday shocked markets, showing a reduction of 23,000 jobs in March, against expectations of a 40,000 rise. US non-farm payrolls were announced on Friday when most global markets were closed.
In company news, the US government is preparing the sale of its 7.7 billion shares (27% stake) of Citigroup.
Elsewhere in the banking sector, RBS was fined £28.6 million for breaking competition law in the UK and Irish lender AIB reported a loss of €12.7 billion since being nationalised in January 2009.
In Europe, the Greek government raised €5 billion in a bond auction on Monday, in an attempt to ease the county's debt crisis. Greece has until the end of May to refinance around €20 billion of its debt.
Meanwhile, an index of European economic confidence improved to an almost two-year high in March, led by strong services and manufacturing sectors and a weaker euro that is helping exporters.
Europe's manufacturing sector expanded in March at its fastest pace since November 2006.
However, it was announced on Wednesday that unemployment in the eurozone hit 10% in February. European consumer prices also increased by 1.5% in March.
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Weekly Trading Report 5 April 2010 - The Week Ahead
Indicators
As we emerge from the Easter weekend the economic calendar starts quietly, before a flurry of key announcements midweek.
Wednesday's UK consumer confidence data will be monitored closely – despite the positivity surrounding the revised UK GDP figures last week, any significant dip in consumer spending over the coming months could seriously threaten Britain's fragile economic recovery.
It's rates day on Thursday, with announcements from both the BoE and ECB scheduled.
While it's generally expected that eurozone rates will remain as they are, there's been some speculation over the ideal timing of a UK interest-rate hike, which could prompt some movements in markets home and abroad ahead of the announcement.
Company Results and Reports
The company earnings schedule is relatively light, but results from British Airways on Wednesday are sure to be sharply in focus after their recent well-documented troubles.
Coupled with a report from easyJet on Thursday, these should form a decent overview of the state of the British commercial airline industry. Results from Vedanta Resources, also on Thursday, should give a decent indication of how the mining sector is faring.
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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 5 April 2010', Review by D. Jones, last update: 5-Apr-10
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