London investors await data-heavy week

13 Aug, 2012

Investors in London will pore over a raft of British economic data next week as the latest earnings season winds down. London's benchmark FTSE 100 index of leading share prices finished at 5,847.11 points on Friday, up 1.0 percent from a week earlier. Next week, Britain's Office for National Statistics (ONS) will publish July inflation figures on Tuesday, followed by unemployment on Wednesday and retail sales Thursday.
Investors will also digest Wednesday the minutes from the Bank of England's most recent monetary policy committee (MPC) meeting. The BoE voted in August to keep its main interest rate at a record low 0.50 percent and maintain its level of quantitative easing (QE) cash stimulus at pound 375 billion ($584 billion, 476 billion euros) despite a deepening British recession.
"The data calendar is... busy in the UK, although we are not convinced that the releases will change our perception of economic prospects or the policy environment," Investec economist Philip Shaw said looking to next week. "Wednesday's MPC minutes should show that members were unanimous in keeping monetary policy on hold earlier this month. "We are still of the view that the committee will sanction a further £50 billion of QE towards the end of the year, taking the target to pound 425 billion."

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