Sunday, July 10, 2022 at 11:12 am
London’s leading index FTSE 100 rose 0.38 per cent to shed volatility in Downing Street to end the week at 7,196.24 (Photo by Holly Adams/Getty Images)
Citi will keep its eyes on the latest GDP figures released this week, which suggest the UK is on the brink of recession in an already busy week of data announcements.
London’s leading index, the FTSE 100, shrugged off the turmoil in Downing Street and ended the week up 0.38 percent at 7,196.24 points.
The domestically focused mid-cap FTSE 250 index, which is more focused on the health of the UK economy, rose 1.48 percent to end the week at 18,912.95.
Traders have been silent over days of pressure from former Prime Minister Boris Johnson to bow down and resign.
Instead, they are more concerned about the UK economy, which is turning upside down largely on the back of inflation-dampening spending and higher interest rates for homes and businesses.
New GDP data released on Wednesday could trigger a downward spiral in the city’s main indexes if it shows the economy is contracting in May.
Analysts expect production to be flat for the month.
Sanjay Raja, senior economist at Deutsche Bank, believes production rose 0.1 percent in May. But the economy “will” [have been] Weak sentiment, impacted by deteriorating export orders and lower domestic consumption (particularly in services) as real incomes are weighed down by the rising cost of living crisis.
More harsh signals from Bank of England Governor Andrew Bailey at Wednesday’s Treasury Select Committee barbecue could raise hopes for a 50 basis point hike at the next central bank meeting on August 4.
“Bottom line: The need for speed is clear,” King said. Inflation is at a 40-year high at 9.1 percent but is expected to top 11 percent in October, more than five times the bank’s target of 2 percent.
The bank has hiked rates in each of its last five meetings, taking them to a 13-year high of 1.25 percent.
On the corporate front, BT’s C-suite could come under pressure on staff salaries at a shareholders’ meeting on Thursday as staff backed strike action earlier this month.
Continue reading
The new prime minister will have to deal with ‘volatile’ UK debt, the fiscal watchdog warns
Similar tagged content:
electricity
categories
Related topics
source
