STOCK MARKETS - THE WEEK IN VIEW
Sunday 23 February 1997
The gains are likely to send the FT-SE 100 Index back into record territory - provided earnings from National Westminster Bank, EMI Group, Standard Chartered, Prudential, Abbey National and British Aerospace don't disappoint.
"The market will really focus on the financial results," said Job Curtis, a fund manager at Henderson Investment Management. "If they come out with reasonable results, it could be quite positive."
Exporters, whose goods become less competitive when the pound is strong, should be boosted by the currency's recent weakening. Sterling closed on Friday little changed against the dollar but comfortably below the highs seen two weeks ago.
UK drug shares could also rise this week as the US Food and Drug Administration's Cardiovascular and Renal Drugs Advisory Committee meets to review new heart drugs, including SmithKline Beecham's Coreg, a treatment for patients suffering from congestive heart failure.
The weaker pound probably won't help oil companies like British Petroleum and Shell. Crude oil prices fell to a six-month low on Friday.
It will also be a heavy earnings week in Paris, with drug company Sanofi, oil giant Elf Aquitaine, financial services group Paribas and electrical accessories maker Legrand all reporting 1996 results. Low interest rates should support the market.
In Frankfurt, shares of automakers, chemical companies and other exporters could rise this week lifted by the dollar's strength against the mark. Comments from a Bundesbank official suggesting Germany may not meet the criteria to participate in the single currency could be good news for bonds and financial shares.
In Tokyo, Japanese stocks could extend last week's gains amid optimism that the country's banks will get government help to clean up their bad debt.
In New York a Goldman, Sachs report predicted that the Standard & Poor's 500 Index may rise to 850, almost 6 per cent higher than Friday's closing price, by March next year. Copyright: IOS & Bloomberg
- 1 Autistic adults could take pure MDMA to 'reduce social anxiety'
- 2 Stolen Instagram photo sells for $90,000
- 3 Before you complain about your GP, this is what you need to know about actually doing the job
- 4 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
- 5 Paracetamol Challenge: Mother of girl killed by overdose pleads with teenagers not to take part
Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
'Don't blame all men for rape' campaign backfires spectacularly
Fifa corruption arrests: How Chuck Blazer rinsed money from the beautiful game
Fifa corruption live: Uefa to consider pulling teams from Fifa tournaments if Blatter stays
Ukip MP Douglas Carswell says he felt his safety was 'seriously at risk' after he was surrounded by anti-austerity protesters
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Australian man punched in the face for defending Muslim women from abuse on train
A nation of inequality: How the UK is failing to feed its most vulnerable people
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...