UK shares to seek firmer ground following volatile trade

The British stock market will seek firmer ground next week following recent volatile trade, with finance minister Gordon Brown revealing what is expected to be his final annual budget before parliament.
London's FTSE 100 index of leading shares ended at 6,130.60 points on Friday, down 114.6 points or 1.84 percent from a week earlier. The FTSE had gained 2.1 percent the previous week, following a 4.46-percent slump in the final week of February. Global stock markets struggled on Friday to recover from the latest equities sell-off as anxious investors assessed the outlook for the US economy.
Another rout on global equity markets, sparked by fears of a meltdown in the US housing market, was paused on Thursday by a one-day rally in the United States, Europe and Asia.
However, markets in London, Frankfurt and Paris finished Friday with slight losses as cautious trading prevailed.
Next week, meanwhile, sees finance chief Brown unveil what is widely regarded as his final annual budget before taking over from Prime Minister Tony Blair later this year. Brown, the leading contender to replace Blair who is stepping down after a decade as Britain's leader, is forecast to focus on the environment and education when he unveils his 2007-2008 spending plan before parliament.
Other key economic releases next week include retail sales data for February and minutes from the Bank of England's latest meeting earlier this month. The central bank had held its key interest rate at 5.25 percent in March, sticking to its wait-and-see approach after British annual inflation fell heavily in February.
Meanwhile, analysts are hoping that next week will bring calm to the London market as investors snap up bargains following the renewed equities downturn.
Earlier this year many global indices had enjoyed multi-year high points after a rally that lasted about four years. "We have no reason for thinking that the sell-off in equity markets is anything more than a correction," said Brewin Dolphin analyst Mike Lenhoff. He added: "Equity markets will have their good days and their bad ones but we reckon that any further downside presents a buying opportunity."