Agenda: UK consumer prices in focus
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Stock markets are back in nervous mode, with a number of political concerns to worry investors. The US attack on Syria has increased the global uncertainty, and on top of that there are increasing tensions between President Trump’s administration and North Korea. In Europe the French presidential race continues to dominate the agenda. Ipek Ozkardeskaya, senior market analyst at London Capital Group, said:
Flight to safety continues, as geopolitical concerns occupy the global headlines with North Korea’s missile tests, US’ strike on Syria and Jean-Luc Melonchon gaining support in the French election race… According to one Kantar poll, Melonchon advanced to the third place, taking lead over Francois Fillon. Political risks could encourage a further slide in the euro.
So the Nikkei has closed down 0.27% and European markets are expected to open slightly lower:
IGSquawk
(@IGSquawk)Our European opening calls:$FTSE 7343 down 6
$DAX 12170 down 30
$CAC 5099 down 8$IBEX 10406 down 32$MIB 20145 down 57
On the economic front, the latest UK inflation figures are in focus, and are expected once again to come in above the Bank of England’s 2% target. Many analysts are forecasting a figure of 2.3% in March, flat on the previous month although some believe there could be a slight dip. Unicredit said:
We see headline CPI inflation easing to 2.1% year on year in March from 2.3% year on year in the previous month, and core inflation down by 0.3 percentage points to 1.7% year on year. The later timing of Easter this year and a negative contribution from motor fuel prices is likely to more than offset substantial price rises by some of the Big 6 UK energy suppliers.
Here’s our preview of what to expect:
German confidence figures are also due later and, on the corporate front, we have figures from JD Sports.