Today’s FTSE100 was supposed to build on yesterday’s strong rally, holding over 7,000 points, ending another event-rich week.
The 1% rally was held on Thursday following the worst on Wednesday, and today the FTSE is expected to open 12 more points at 7027. A rally is not much, however integration in the positive territory.
Last night, Wall Street broke its three-day losing streak with a positive result and spread to Japan this morning, where the Nikkei is up 0.7%. However, Hong Kong and China saw a moderate decline, sparking some optimism in Europe.
The key to today’s trade may be the retail economy, which has been steadily accumulating since falling more than 8% in January. The figure for April is expected to be 4.5% per month, 36.8% higher than last year. This latest figure should really be ignored as he faces the dark days of the Govt siege in 2020.
Michael Hewson, analyst at CMC Markets, said the British Retail Federation’s High Street poll has already shown a good improvement over the month of April, so official data from the Office for National Statistics should be equally confident.
If so, it could set the stage for the May issue, as the two weeks of April will reopen essential retail.
News of a broader economic recovery will also be released today in the form of a survey of the Purchasing Managers Index. These “flash” figures provide a snapshot of the latest trade and cover key economies such as the UK, Germany, France and the US.
Expect more positivity in most markets. The UK has already seen a strong recovery in demand for goods and services, which is expected to continue in the current PMIs for May.
On the mainland, there may be a slight delay as the blocks enter later than the UK, and many leisure and retail activities continue to be restricted as countries fight the variant of the Indian Govt.
May be better than April, as vaccination programs have begun to affect infections, and have allowed controls to ease.
An index with a positive of more than 50 can be expected to reach 62.2 for the UK BMI score services and 60.8 to produce for an index. It follows the April scores of 61 and 60.9.
Improving the UK economy will boost President Rishi Sunak as it will lead to higher tax revenue and allow spending on UK public services to increase.
Debt for 2021-22 is expected to fall to $ 150 billion from $ 233.9 billion in the March Financial Liability Office forecast, according to the FD. This will allow the fall newspaper to present that as a “good news” report.
However, treasury officials are warning about overconfidence with the uncertain outlook on the Govt situation as the Indian divide spreads.