Investors on the London stock market will be besieged on several fronts next week as world financial turmoil, a looming recession in Britain and retail data threaten to shake sentiment. London's leading FTSE-100 stock index fell by 4.20 percent over the past week to close at 5,088.47 points on Friday.
It was roiled along with other European stock markets by uncertainty over whether US lawmakers would pass a 700-billion-dollar rescue package for the crisis-stricken stock market. Political wrangling on the deal continued in Washington Friday as European markets closed for the weekend. In the week ahead meanwhile, London was bracing for the definitive second quarter British growth figures, due to be published on Tuesday.
Analysts at Calyon bank said the final figures were expected to confirm a previous gloomy forecast of stagnation in Britain's economy. Howard Archer, head economist at Global Insight, predicted Tuesday's figures would show zero growth, setting up a widely-predicted slide into recession with negative growth predicted in the third and fourth quarters.
Two big retail chains, Tesco and Marks and Spencer, are due to announce their second-quarter results next week. The retail sector is seen as a key gauge of any future recession. Six-month turnover statements are due meanwhile from TUI Travel, financial firm Man Group and restaurant giant Compass.
Comments
Comments are closed.