The London stock market will look to extend a positive start to 2010 next week when investors absorb fresh economic data and results from supermarket group Tesco and mining giant Rio Tinto. London's benchmark FTSE 100 index ended the week on Friday at 5,534.24 points, a rise of 2.24 percent from Thursday of the previous week, when markets had shut early ahead of the New Year celebrations.
This week, on Thursday, the FTSE struck 5,551.70 - the highest intra-day level since early September 2008 - albeit amid low trading volumes as some workers remained on holiday and as freezing weather kept others at home.
"Momentum coupled with positive newsflow is helping to push the FTSE to 16-month highs," ETX Capital senior trader Manoj Ladwa said. Traders will focus next week on British trade data on Tuesday and industrial production numbers on Wednesday with many looking for a sign that the economy is really about to come out of recession.
On the company earnings front, Tesco and Rio Tinto will publish trading updates on Tuesday and Thursday, respectively. Global markets began 2010 on a positive note Monday as investors counted on an extension of the strong recovery from the worst economic slump since the 1930s, dealers said.
Positive manufacturing data from China and the United States also helped but then sentiment took a hit on Friday on news that the US economy lost 85,000 jobs in December - dashing hopes of a turnaround the ailing US labour market. The London FTSE 100 jumped by about 22 percent in 2009 as a whole, having soared by almost 55 percent since striking six-year lows last March at around the 3,500-points mark.
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