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Stock market trading may be cautious after ONS figures

Stock market trading may be cautious after ONS figures
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Stock market trading may have been impacted after the Office for National Statistics (ONS) revealed gross domestic product in the UK increased by two per cent in the first quarter of 2010.

This is compared to the 0.4 per cent growth seen during the previous quarter.

Commenting on the statistics, Capital Economics said they represent the current fragility of the monetary climate.

"The fact that it has only risen by 0.2 per cent I think, if anything, it increases concerns about a possible double-dip [recession]," said Jonathan Loynes, chief European economist at the economic research consultancy.

He added with such small growth, it would not take much for the UK to be knocked "back into negative growth territory".

Stock market trading may therefore be cautious in light of the financial figures.

Increased growth was experienced in the finance and business services sectors, while weaker growth was contributed to by hotels, restaurants and distribution.

Posted by Greg SeckerADNFCR-1681-ID-19741178-ADNFCR