What's happening this week? - Markets & News - The Share Centre

Please remember: Our website can help you make informed decisions, not provide personalised advice. If your investments fall in value, you could lose money.
Tax allowances and the benefits of tax-efficient accounts could change.

Market Report: 20 March 2017

Among the highlights of last week’s economic data was Chinese industrial production which rose higher than expected up to 6.3% over the year to February. On the other hand, European Industrial Production rose 0.9% in January, a less encouraging figure which was short of expectations.

The UK employment data continued to show positive momentum in February as the claimant count fell more than expected, 90,000 new jobs were created and the unemployment rate dropped down to 4.7%. However, the rate of wage growth was still anaemic.

The Bank of England and Bank of Japan kept policy rate on hold as expected but the highlight of the week in the financial markets was the US Federal Reserve’s interest rate decision. Markets had priced in a 95% chance of a rate rise by 0.25% which is exactly what we got. Janet Yellen’s commentary was just as important as she stated that the Fed expects another 2 rate rises this year and three in 2018. She stated that the Fed saw resilient growth in the US and a good US jobs market. However, while saying that risks to inflation were “symmetric” she inferred that the Fed remains on guard if inflation picks up too fast beyond the 2% target. Earlier in the day, we had data showing that core inflation was hovering marginally below 2%.

For the upcoming week there are few significant macro data releases. On Tuesday, we have the latest UK CPI figures, economists expect that inflation rose by 1.7% compared to February last year. On Thursday, the UK Retail Sales data is expected to show that Britons spent 0.40% more in February compared to the previous month, and 2.6% more year-on-year. Finally, on Friday the EU Markit PMI will be released, analysts expect a slight increase in output up to 56.1 in March.

Author: Helal Miah, Investment Research Analyst

The Week Ahead

Important economic releases & events this week:

Date Country Event Period Consensus Prior
Tue UK CPI Core NSA Y/Y FEB 1.7% 1.6%
Tue UK CPI EU Harmonized NSA M/M FEB 0.50% -0.50%
Tue UK CPI EU Harmonized NSA Y/Y FEB 2.1% 1.8%
Tue UK PPI Input NSA M/M FEB -0.15% 1.7%
Tue UK PPI Input NSA Y/Y FEB 19.9% 20.5%
Tue UK PPI Output ex-FBTP NSA Y/Y FEB 2.5% 2.4%
Tue UK PPI Output NSA M/M FEB 0.35% 0.60%
Tue UK PPI Output NSA Y/Y FEB 3.8% 3.5%
Tue UK CBI Industrial Trends Export Order NSA M/M MAR   -10.0
Tue UK CBI Industrial Trends Total Orders NSA M/M MAR   8.0
Wed US EIA Crude Oil Stocks 03/17   -0.24M
Thu UK Retail Sales ex-Autos Fuel SA M/M FEB 0.40% -0.20%
Thu UK Retail Sales ex-Autos Fuel SA Y/Y FEB 3.2% 2.6%
Thu UK Retail Sales SA M/M FEB 0.40% -0.30%
Thu UK Retail Sales SA Y/Y FEB 2.6% 1.5%
Thu US EIA Natural Gas Stocks 03/17   -53.0B
Thu EUZ Consumer Confidence Indicator (Flash) MAR -5.8 -6.2
Fri EUZ Markit PMI Composite SA (Preliminary) MAR 56.1 56.0
Fri EUZ Markit PMI Manufacturing SA (Preliminary) MAR 55.5 55.4
Fri EUZ Markit PMI Services SA (Preliminary) MAR 55.3 55.5
Fri US Markit PMI Manufacturing SA (Preliminary) MAR 54.8 54.2
Fri US Markit PMI Services SA (Preliminary) MAR 54.3 53.8

Companies reporting this week: 

Date Company Name Event Description
Mon Finsbury Food Group Plc Q2 2017 Earnings Release
Tue EnQuest Plc Q4 2016 Earnings Release
Tue Earthport Plc Q2 2017 Earnings Release
Wed Kingfisher Plc Q4 2017 Earnings Release
Thu Next Plc Q4 2016 Earnings Release
Fri Smiths Group Plc Q2 2017 Earnings Release

Author: Helal Miah, Investment Research Analyst

Glossary

PMI: Purchasing Managers Index

CPI: Consumer Price Index

GDP: Gross Domestic Product

BOE: Bank of England

ECB: European Central Bank

FOMC: Federal Open Market Committee

BOJ: Bank of Japan

ISM: Institute for Supply Management

Latest magazine

Latest magazine

Read the latest edition of our Shareholder magazine.

free trial

free trial

Share tips, Practice Account, guides, market data and more.