Investors in London return to their desks on Monday seeking a stock market recovery as the British government delivers a key budget statement and Britain's bosses gather for their annual conference. The FTSE 100 index of leading shares closed on Friday at 3,780.96 points, down 452.01 points or 10.68 percent over the week and at their lowest finish since April 3, 2003.
European stock markets suffered heavy losses on Friday as an early rebound gave way to growing concerns over a grim global economic outlook. The London market slumped below 4,000 points on Thursday for the first time in November on deep recession worries, traders said.
"There is still a real sense of gloom about the financial markets based on rising unemployment and falling profits," said IG Index analyst Anthony Grech.
"Data from America is continuing to paint a perilous outlook for the US economy ... one that European indices often have little choice but to follow. For now, the overriding view is that the recession will be long and drawn out," Grech said.
British finance minister Alistair Darling will Monday deliver to parliament his pre-budget report - an outline of his taxation and spending plans ahead of the full 2009/2010 annual budget due early next year.
The pre-budget will be framed against the backdrop of a looming recession, souring consumer sentiment, mounting job losses and the perilous state of public finances.
Also on Monday, the Confederation of British Industry meets in London for a one-day annual conference - an event set to be dominated by the global financial crisis. On Wednesday, investors will pore over the second official estimate for third-quarter gross domestic product (GDP).
Comments
Comments are closed.