Britain's FTSE-100 index of leading shares is expected to rise or at least hold current levels this week with Vodafone at the top of the corporate menu as investors eye its acquisition strategy.
Barring violent new shocks in Iraq, analysts and fund managers said UK market participants were ready to focus on the story at home, and the earnings story, they said, looked good.
Trading has been choppy in the UK this week, but by early afternoon on Friday the FTSE-100 stood at 4,442 points, exactly where it ended last week after tumbling as low as 4,363 but recovering back as high as 4,471.
A meeting of Opec ministers this weekend has kindled hopes that the oil cartel will relax supplies to provide some relief from spiralling energy costs. Investors are also edgy about expected hikes in UK and US interest rates in the coming months mean the market is likely to remain volatile.
The market is primed for earnings-backed gains after surprise turnaround stories this week.
Analysts are expecting Vodafone to report robust annual results on Tuesday, with core earnings and consolidated revenues seen up 14 and 10 percent respectively on average.
But a poor performance of the group's Japanese business and continuing concerns about the group's acquisition strategy is expected to cast a pall over the figures.
Retail will be another key focus. High-street stalwarts Marks & Spencer and Boots are lining up to post full-year results, as is Argos owner GUS.
Additional clues to the mood of the consumer will come from a consumer confidence survey expected on Thursday in an otherwise quiet week for UK macroeconomic data, although a first quarter gross domestic product revision is due on Wednesday.
Marks & Spencer, expected to report pre-tax profit of 753-760 million pounds on Tuesday, has said full-year profits should be in line with estimates despite reporting a big fall in fourth-quarter sales in April.
GUS is expected to get a boost from a 12 percent sales increase at Argos to report a big rise in annual pre-tax profit to about 817 million pounds.
Luxury goods retailer Burberry, in which GUS owns a majority stake, is expected to be 136-140 million pound profit before interest, taxes and amortisation on Monday. Burberry's recently said it was comfortable with that figure.
Health and beauty chain Boots is forecast to make 560 million pounds profit for the year but the focus will be on CEO Richard Baker's big spending plans for 2004/5.
The week's reports may also shed light on a bidding triangle of Pennon Group, Shanks and the investment group of Guy Hands in the water and waste utility industry.
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