FTSE 100 sees 10th consecutive daily rise
Even though news on the GDP front was disappointing to say the least the UK stock market today racked up its 10th consecutive daily rise although there was a small bout of profit taking towards the end. Having risen above the 4600 level at one point the market ended the day at 4576.6 for a rise of 4.3% over the week. Why is the market so strong, when economic figures suggest the economy is struggling?
As we have mentioned on numerous occasions, the general opinion within UK markets is that the stock market actually "looks ahead" nine months. On this basis you could be led to believe that the economy will make a fairly strong recovery over the next nine months even if the GDP figures today would suggest otherwise. However, there is no doubt that the much higher expected rate of decline in the UK economy in the last quarter did surprise many analysts and any more figures of a similar nature could have a much greater impact.
The next few weeks will test investor confidence to the maximum as we see a raft of company results, economic data and political jostling for pole position. It will be very interesting to see how the markets swing over the next few weeks and months and ultimately how the UK economy performs.
Share this..
Related stories
Lloyds bank under pressure again
Only hours after the UK Supreme Court rejected a request by the office of fair trading to effectively rule on whether UK bank overdraft charges were legal or not, Lloyds bank has confirmed it will go to the courts this week to have various claims against the company thrown out. How ironic that the banks are reacting with indecent haste while they themselves have attempted to drag on the overdraft...
Read MoreWho will benefit when the economic upturn finally comes?
As the UK stock market continues to fluctuate on differing opinions and differing reports about the UK economy there is speculation as to who would benefit the most as and when the recovery does come. Some observers are starting to compare the UK economic situation, and the eventual recovery, with a dot-com style boom which could see wealthy investors pick up significantly undervalued assets befor...
Read MoreSavings rate for retirement falls amongst women
Scottish Widows has today introduced a survey into the pensions and savings market which suggests that more and more working women are failing to put aside sufficient savings for their retirement. Despite the fact that there has been a rise in the number of people putting money aside for their retirement, from 51% in 2008 to 54% this year, the split between men and women is not equal.
Read More
Mortgage approvals surpass Bank forecasts
The Bank of England (BoE) has announced that 114,000 mortgages were approved in May well above its expectation of a total of 105,000 for the month.It is the first time mortgage approvals have increased since January.Mortgage lending increased by £8.7 billion, the lowest rate of increase since February 2006. Together these indicators provide important information about the housing market as...
Read MoreDoes your MP give you value for money?
As Conservative frontbencher Alan Duncan brings more shame on to the Parliamentary system and the expenses available to MPs, many people are asking whether they actually get value for money from their MP. Despite the fact that literally hundreds of MPs have paid back money to Parliament which they claimed from the expenses system, there still appears to be an air of arrogance across the UK politic...
Read More