UK GDP Shows Biggest Drop 50 Years
Financial Market Comments from Anthony Grech, IG Index.
The UK stock market is flat in early trading amid mixed economic news.
First of all, UK Gross Domestic Product shrunk more than expected in the first quarter, showing a drop of 2.4% – the biggest for 50 years.
However this news was tempered by a rise in UK Consumer Confidence, getting to its best levels since April last year. That suggests that, at least, there are some who think we are over the worst of the recession.
The lack of market reaction doesn’t come as a surprise – there seems to be a distinct lack of conviction in either direction for traders at the moment and low volatility is the order of the day.
US markets appear more buoyant than their UK counterparts and further strength from over the pond yesterday seems to be offsetting the more downbeat look that has dogged London for the past few days.
Looking ahead to the US session, we are expecting the Dow Jones to start broadly unchanged from yesterday’s close. With the US’s own Consumer Confidence numbers due out just after the open, we could well see a boost of much-needed volatility.
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Good Luck!
DB
The above comments do not constitute investment advice Clean Financial accepts no responsibility for any use that may be made of them.
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