UK Rightmove house price index showed an improvement in the housing market YoY however in February there was a small seasonal decline. Better news came as a study from YouGov proved that confidence in UK economic recovery in on the way up. Sterling is still under close watch ahead of the UK’s budget tomorrow.
News and publications reported a growth in new business start-ups in parts of the UK including 62,297 since 2010 in the West Midlands, which is a rise of 19.1%. It is also promising that in some of the poorest parts of the UK that we are expecting to see the largest rise in economic growth throughout the UK, as analysts and reports are suggesting.
Federal Reserve Chairman Ben S Bernanke and his colleagues may tighten spending in the US as unemployment remains a worry. The US dollar also found support as the world’s largest commodity broker suggested that demand for metals is on the decline from China. China is seen as the largest consumer for such commodities so this does not reflect well on global demand.
Portugal is back on the forefront of the European debt crisis, with markets expecting it to go cap in hand for a bailout. 10 year bond yields rose to 14.24% for Portugal. German bunds also rallied to 2.05 from a low of 1.76% as markets feel that Greece’s recent bailout will not be enough and that it is imperative for them to implement the austerity cuts.
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