Luminox
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Arguably, UK stock indices are already somewhat inflated. Don't forget, the price of FTSE companies' shares reflects those factors from which GDP is measured. However, cable surged on the announcement, suggesting perhaps the two are not mutually priced relative to overall economic performance.
robster970
Veteren member
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uk gdp figures were inflated because the construction sector had materially improved as a consequence of government spending in large infrastructure projects. these will get cut by ConLib and the remainder of the FTSE constituents will continues as normal. QE, inflationary pressure, continuing devaluation of USD means US economy continues to leads and RoW follows for the forseable future. Blame Ben 'Zimbabwe' Bernanke.
FTSE constitutes companies whose main income is from international sources not purely domestic. So UK GDP will have less of an impact than the average joe will assume.
The market is forward facing. So good GDP means less QE and less stimulus for the economy going forward. Also, the players know the latest GDP doesn't count the recent spending review cuts which are bound to have a negative impact on growth.
The market is forward facing. So good GDP means less QE and less stimulus for the economy going forward. Also, the players know the latest GDP doesn't count the recent spending review cuts which are bound to have a negative impact on growth.
