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London – A great wave of economic, business and monetary news will keep London investors alert next week as they watch for signs of recovery after a choppy few days on the stock market, analysts say.
"Many investors are already looking towards a raft of crucially important data and interest rate decisions due next week," said Joshua Raymond of London spread-betting firm City Index.
"Next week could well play a significant role in determining how the markets will finish the year."
He cited interest rate decisions due from the Bank of England, the European Central Bank (ECB) and the US Federal Reserve’s monetary committee (FOMC), plus crucial non-farm US jobs data.
"With confidence taking a bit of a beating this week, a poor non-farm pay roll figure could have investors running for the hills."
Data on Thursday showed the US economy, the world’s biggest, emerged from recession in the third quarter, but this gave only a short-lived boost to European stock markets.
London’s FTSE 100 index of leading shares finished on Friday 3.78 percent lower than a week earlier at 5,044.55 points, reflecting investors’ doubts about the sustainability of an economic recovery.
Investors will watch the central banks’ announcements closely for signs that they may rein in their emergency monetary measures, analysts said.
After British growth data last week showed the major EU economy still stuck in recession, the Bank of England may create more cash to fuel a recovery, said Michael Saunders of financial firm Citigroup.
Thursday also sees the publication of industrial production data in recession-hit Britain. Howard Archer, an analyst at IHS Global Insight, forecast a major strengthening in that indicator.
Top mortgage lender Halifax is also due next week to publish its housing price index. The index of its competitor Nationwide published this week showed the pace of the rise in house prices slowing.
Among companies due to report earnings results next week are budget airline Ryanair on Monday, retailer Marks and Spencer on Wednesday and British Airways on Friday.
Finance ministers from the G20 grouping of major economies are to meet in Scotland on November 6 and 7.
AFP/Expatica