Markets seek further signs of economic stabilisation

After the recent rally in equity markets, markets are hoping to see further signs of stabilisation in the major global economies. While the pace of deterioration in the world's largest economy has somewhat improved, the economic prospects of the UK and the eurozone are still being severely questioned.

An economic sentiment survey will start the week for the eurozone. It will assess whether the recent optimism in the equity markets is supported by well-founded improvements in economic prospects.

Midway through the week the Purchasing Manager Index (PMI) for both manufacturing and services will be released. Economists are expecting an improved figure for the manufacturing and services PMI, although still below the contraction level of 50.

Industrial new orders will wrap up the week on Thursday.

The UK economic schedule looks heavier, with significant data coming out throughout the week. Inflation data will feature early in the week, as Consumer Price Inflation is expected to have somewhat abated in March after the unexpected rise to a yearly figure of 3.2% in February.

The Bank of England (BoE) minutes are expected to be somewhat rhetoric as the BoE reconfirms the plan of purchasing further assets from the market.

Meanwhile, unemployment is likely to increase and a rate of 6.7% is currently forecasted. As the week comes to an end, retail sales figures for March will be released which should show a slight improvement.

Gross Domestic Product (GDP) figures will provide the final salvo of data for the week, as the first quarter of 2009 is expected to be confirmed at -1.5% and a negative year-on-year figure of 3.8%.

After an eventful week, the US economic data schedule will revert to a normal pace. Most of the relevant data will be piled up at the end of the week with a barrage of housing data, as existing and new home sales data hit the wires.

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