Market insights

UK Economy Contracts Unexpectedly

Analysts had expected a modest 0.1% growth to be reported at breakfast this morning.

The actual figure showed a -0.1% contraction.

A slowdown in manufacturing was cited as the main catalyst.

This puts pressure on the UK Government who have a focus on economic growth.

Maybe this will have an impact on the Spring Statement released on Wednesday 26th March.

The rest of the day sees a key consumer sentiment reading from the US after lunch before the weekend.

Early Monday sees a snapshot of the UK housing market before Chinese retail sales numbers shortly after.

Pound rates have remained relatively resilient in light of the negative news this morning with a continuance of the decorrelation between the Dollar and the Euro.

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Economic calendar

US: 14:00 Michigan Consumer Sentiment Index

UK: Monday 00:01 Rightmove House Price Index

CHN: Monday 02:00 Retail Sales

As ever we look forward to keeping you in the loop and look out for our next update.

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