Weekly Outlook: Chancellor to unveil UK’s spring budget

Monday March 21

  • – Commercial statement of Three
  • – Rightmove UK house price index
  • – In Asia, the quarterly results of Pinduo-duo and Tencent Music
  • – In the United States, the quarterly results of Nike

tuesday march 22

  • – Annual results of Wood Group, Kingfisher, Saber Insurance and Harworth
  • – Half-year results of Softcat and Oxford Nanopore
  • – Japanese inflation
  • – British government loan
  • – US producer price inflation
  • – In Asia, the quarterly results of Xiaomi
  • – In the United States, the quarterly results of Adobe

Wednesday March 23

  • – Annual results of ultra electronic, Dignity and Henry boot
  • – Commercial statement of Halma
  • – UK inflation figures
  • – UK Spring Statement from the Chancellor of the Exchequer
  • – Sales of new homes in the United States
  • – US Oil Inventories
  • – In Asia, the quarterly results of Tencentapple provider foxcon and owner of Volvo Geely Automotive
  • – In the United States, the quarterly results of General Mills

“Events in Ukraine and – from a very narrow financial markets perspective – the effect of the war on commodity prices in particular continue to dominate the headlines and the conflict is likely to overshadow just about everything. the rest,” said Russ Mould, chief investment officer of AJ Bell. , and Danni Hewson, financial analyst.

“But investors will no doubt be keeping an eye out for Chancellor of the Exchequer Rishi Sunak’s spring statement on Wednesday March 23, which is also the expected release date for February inflation figures here in the UK.

‘The Bank of England aims to keep inflation at around 2% and after a good decade of not meeting that target, the old lady of Threadneedle Street faces a different challenge of how to get it under control.’

Mold and Hewson added: “It requires a delicate balancing act. If the Bank of England raises interest rates too far, too fast, the heavily indebted UK economy could quickly hit the buffers. If it moves too slowly, inflation could dampen the real purchasing power of workers’ wages and affect corporate profit margins, affecting consumers’ willingness and ability to spend and businesses to hire and invest.

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, described the inflation reading for February as “a bit like testing the temperature of a hot bath before pouring a few kettles of boiling water into it”.

“Inflation is expected to heat up again, beyond the 5.5% recorded in January, but the commodity chaos triggered by the invasion of Ukraine will not fully manifest. In the coming weeks, unwanted bills will also land on carpets, along with higher energy rates, another unwanted inflationary factor that is expected to push the overall rate to 8% or more.

“With inflation on the rise, the Bank of England should also keep its tightening on track, with another rate hike expected in May pushing up the cost of borrowing in a bid to depress demand.”

Thursday March 24

  • – Annual results of Pendragon, Next, Bridgepoint and Sopheon
  • – Half-year results of SVC
  • – Flash Purchasing Managers Indices (PMI) of Asia, Europe, UK and US
  • – Monetary policy decision of the Swiss National Bank
  • – US Durable Goods Orders
  • – Weekly US Unemployment Claims
  • – In Asia, the quarterly results of China-Mobile and CNOOC
  • – In Europe, the quarterly results of Daimler truck
  • – In the United States, the quarterly results of Nio

Friday March 25

  • – Half-year results of group of blacksmiths
  • – Commercial update of United Public Services
  • – GfK UK Consumer Confidence Index
  • – German Ifo Business Climate Index
  • – Belgian Business Climate Index Synthetic Curve
  • – Pending home sales in the United States

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