Outstanding week of economic data to shake up the city

Sunday, April 10, 2022 11:03 a.m.

The capital’s premier FTSE 100 index had a strong week last week, gaining 1.75% (Photo by Hollie Adams/Getty Images)

The City will be watching for a series of headline economic announcements this week that will send ripples through major London indexes.

The capital’s leading FTSE 100 index had a strong week last week, gaining 1.75%.

The domestically focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.21%.

Concerns about the negative impact of rising interest rates were stoked last week after the US Federal Reserve issued a hawkish minutes in which it hinted that several 50 basis point hikes could come this year, weighing on global markets.

However, the FTSE 100 bucked this trend due to its overreliance on oil and gas companies, which are partially insulated from higher rates.

New GDP data released tomorrow should reveal the first signs of an expected slowdown in UK economic growth this year. Most experts believe the economy grew 0.3% in February.

Analysts at Pantheon Macroeconomics expect output to decline in the second quarter of this year, due to a slowdown in spending amid a tightening cost of living.

Jobs figures released on Tuesday are likely to add to fears over the health of the UK economy, sparked by the Office for National Statistics’ likely wage calculation still failing to keep pace with inflation, which which means that the standard of living of the British is falling.

But the numbers most watched this week are the new inflation estimates for March, released on Wednesday.

Most economists believe the rate of price increases jumped to 6.7% last month.

The cost of living is already at a 30-year high of 6.2%, underscoring the severity of the inflation crisis already hitting UK households.

On the business side, retailers lead the week’s billings, with JD Sports and Tesco updating the markets with final results on Tuesday and Wednesday respectively.

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