Dienstag, 25. Januar 2011

FTSE up 0.11% ahead of growth data (AFP)

LONDON (AFP) ? Key stock markets rose in opening deals on Tuesday, with London gaining ground ahead of a crucial first estimate of British economic growth for the fourth quarter of last year.

The FTSE 100 index of leading shares gained 0.11 percent to 5,950.12 points.

"All eyes are on the fourth-quarter UK GDP release," said Ilya Spivak, currency strategist at trading site Daily FX.

"A second consecutive period of above-trend growth threatens to stoke expectations that the Bank of England (BoE) will accelerate the move toward interest rate hikes in the months ahead."

Britain emerged from a record-length downturn in late 2009 but economists remain fearful that the government's severe austerity measures could help push the economy into a so-called "double dip" recession.

At the same time, the BoE may soon start raising interest rates from record-low levels, after recent news that inflation had spiked to 3.7 percent in November on the back of soaring energy and food prices.



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Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http://news.yahoo.com/s/afp/20110125/wl_uk_afp/stocksbritainopen

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