City eyes busy week of economic data and announcements


Sunday March 13, 2022 10:40 a.m.

Last week was extremely volatile for London’s leading FTSE 100 index, rising from a low of 6,674 to a high of 7,672. It eventually ended up 2.41%

Investors’ attention to developments in the Russian-Ukrainian conflict could be diverted by a jam-packed week of headline economic data and announcements.

Last week was extremely volatile for London’s leading FTSE 100 index, rising from a low of 6,674 to a high of 7,672. It eventually ended up 2.41%.

The market’s wild moves were driven by investors reacting sharply to news of the Kremlin stepping up its assault on Ukraine and soaring energy prices.

Fears that high oil and gas prices will hurt economic growth in the West this year have spread through markets, prompting investors to abandon equities and turn to safe havens.

New UK labor market data released on Tuesday will reveal whether wage pressures are mounting as companies raise wages to attract new talent and retain existing workers in a tight labor market.

The figures will likely fuel the Bank of England’s rate-setting committee’s reflection on whether to raise interest rates for the third time in as many meetings on Thursday.

Threadneedle Street has already raised rates in successive meetings for the first time since 2004. However, it must now weigh the balance between growth and containing historically high inflation, which is at an almost 30-year high of 5 .5%.

Soaring energy prices triggered by the conflict are expected to propel inflation above double digits, some economists say.

The US Federal Reserve will also announce its latest interest rate decision on Wednesday. Chairman Jerome Powell and co are expected to send rates 25 basis points higher. Just like in Britain, the cost of living in the United States is at an all-time high of 7.9%.

The owner of Wagamama, the restaurant group, releases the final results on Wednesday.

PensionBee updates the markets with the finals on Thursday.

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