UK growth in the limelight

In the UK, the main focus will be on the minutes of the MPC meeting which are likely to emphasise the two contrasting economic risks faced by the UK economy: on the one side the slowdown in the economy, and on the other the upside risk to price stability. Market participants will also be looking closely at the first estimates of the gross domestic product (GDP) figures for the first quarter. Retail sales figures will give a partial indication on the strength of the local demand. The nationwide house prices report for April will close the economic statistics release for this week.

The economic releases in the US will be fairly limited this week. Durable goods spending data for March is likely to continue indicating the declining pattern in consumer spending observed in the past few months. Elsewhere, existing and new home sales figures for March along with house price levels in February will give an outlook on the housing market. Finally, the release calendar also features some labour market data, with a particular view on initial and continuing jobless claims together with the consumer sentiment figures for April. On the contrary, the Euroland's economic schedule has many indicators this week. The main focus will be on the eurozone manufacturing and services Purchasing Manager Index (PMI). Slower global growth combined with the strength of the euro currency may see a slight decline in the Eurozone industrial orders for February. Other much-awaited releases include the Harmonised Index of Consumer prices (HICP) for March and the Spanish unemployment report for the first quarter of 2008. The money supply figures for the Euroland will complete the picture for the eurozone.

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