GBP

House
prices have continued to rise according to a report by Nationwide. Year on
Year, the rise in house prices hit 9.5% up from 9.4%. However, the London
market is soaring further, with prices up 18% for the whole year, just under double
the national average and are now 20% above their pre-crisis peak.

GBP

House
prices have continued to rise according to a report by Nationwide. Year on
Year, the rise in house prices hit 9.5% up from 9.4%. However, the London
market is soaring further, with prices up 18% for the whole year, just under double
the national average and are now 20% above their pre-crisis peak.

Confidence among UK
construction firms has hit the highest level in over seven years, as house
builders continue to drive strong growth in the sector. Markit’s monthly
construction PMI survey, just released, showed that confidence about the
12-month outlook hits highest level since January 2007.

EUR

The
producer price index (alternative measure of inflation) declined at its fasted
rate in more than three years in the 12 months to February, falling 1.7%.
However without the large reduction in domestic energy prices the decline would
have only been 0.5%

European
Central Bank Vice President Vitor Constancio has said the euro area will probably avoid outright deflation
as a “soft” economic recovery gradually reduces spare capacity in the economy,

USD

In
the USA mortgage application for March continued to fall, declining 1.2%
compared to 3.5% in February. Also ADP employment figures disappointed, coming
in below expectations at 191,000 against a forecast of 195,000, however this is
still an improvement on the previous month’s figures of 178,000

Today

Service
sector figures from the Eurozone and the UK marginally disappointed showing a
slight slowdown in output.

The
UK figures are still fairly robust despite hitting a 9 month low and the
outlook for the sector, which makes up a large proportion of the UK economy
still remains fairly positive. The pound has weakened very marginally following
the data.

Main
focus will be on the inflation report from the ECB where Mario Draghi will
clarify his stance inflation which could mean the markets become volatile
around that time.

Key Announcements:

12.45pm
–EUR – ECB Interest Rate Decision: Expected to remain at 0.25%.

13.30pm
– EUR – ECB Monetary Policy Statement.

13.30pm
– USD – Initial Jobless Claims: Expected to rise to 317,000.

13.30pm
– USD – Continuing Jobless Claims: Expected to rise to 2.84mn.

15.00pm
– USD – ISM Non-Manufacturing PMI (Mar): Expected to expand further to 53.5.