UK stock market takes lead from upbeat economic data
In the first trading day of the New Year, the UK stock market ended up an impressive 1.62% with investors taking note of economic data regarding growth in the manufacturing sector. Even though there had been hopes of a recovery in UK economy in the early part of 2010, the better-than-expected manufacturing figures caught many analysts and investors on the hop. So what next for the UK stock market?
Historically the markets tend to be a little more buoyant in the first few days of the New Year and this year would appear to be no different. We should also start to see retail sales data from the major retailers in the UK which should hopefully confirm hopes that retail sales were better-than-expected over the festive period. However, we also have the VAT issue to contend with VAT returning to its traditional level of 17.5% against the reduced level of 15% brought in by the government. Without doubt an increase of 2.5% in VAT will take more money out of the pockets of consumers and reduce profitability for retailers.
Whether the increase in VAT will be offset by a general increase in the UK economy remains to be seen but so far so good.
Share this..
Related stories
UK dividends down 15% on average in 2009
In a reflection of the state of the UK economy and the UK stock market it has been revealed that the average dividend paid by companies in the UK fell by 15% in 2009. This equates to £57 billion which is around £10 billion less than the corresponding figure in 2008 and an obvious disappointment for investors in the UK. While the figure of 15% is enough to grab the headlines, when you consider...
Read MoreJJB sports and its £8.3 million fee to banks
There has been much speculation regarding the future of sports giant JJB sports over the last few weeks and today the company has confirmed that it paid a fee of £8.3 million to its bankers in order to guarantee a stay of execution. There is widespread condemnation of the size of the fee charged to a company which was struggling to repay its debt and had seen a substantial down turn in trade. Man...
Read MoreHow will BP stop the oil leak?
There have been some major developments in the Gulf of Mexico oil crisis with some experts suggesting that an explosive device or even a nuclear device could be used to seal off the well. While US authorities are not contemplating this drastic action at this stage the very fact that the official in charge of managing the US response to the issue has even discussed it in public is alarming. This...
Read MoreGlossary Of Investment Terms (B)
Balanced Fund
An investment portfolio which is diversified across a range of asset classes which typically include shares, fixed interest, property and cash.
Balanced Manager
An investment manager with experience in asset allocation and the supervision of portfolios containing a variety of different investments. The aim is to create a balanced investm...
Bank shares rally after Basel ruling
Despite the fact that there will be an almost tripling of the required capital backing for banks around the world as results of the Basel committee ruling it seems that many investors are relieved, with the situation not as bad as many had feared. Banking shares were up around the world which has helped to support worldwide stock markets in what is a very difficult period. The problem is that o...
Read More