A rate decision from the ECB and UK GDP data will pique the interest of investors this week, as will a raft of personal finance changes introduced as part of the new tax year on 6 April.
Elsewhere, Brexit fun and games continues and according to BMO Global Asset Management investment manager Anthony Willis, UK-based wealth managers will be keeping a close eye on the outcome of the European Council summit and any agreement that can be reached by UK politicians ahead of it in terms of a cross-party compromise on Brexit.
Willis said: “It seems likely we will see a delay to Brexit to late June, possibly earlier if a deal can be reached. It seems unlikely Brexit will fall far from the headlines however – there is likely to be political fallout on both sides of Parliament. Any hints of an election being more likely may pose trouble for gilts given Labour appear to have closed the gap on the Conservative party in the opinion polls. The Easter recess for MPs has been cancelled so there will continue to be headlines coming from Westminster over the next fortnight.”
Here’s what to look out for in the week commencing 8 April:
Monday 8 April
– Monday marks the first business day for a raft of personal finance changes, introduced on 6 April, including:
– Increase in income tax allowances
– Savers get a rise in tax-free allowances
– Increase in residence nil rate band
– Automatic enrolment contributions hike
– Flat-rate state pension rising to £168.60 a week
– Mortgage interest relief cut for landlords
– Student loan threshold increases
– Germany balance of trade and current account announcement
Tuesday 9 April
– Premier Asset Management Q2 results
Wednesday 10 April
– UK GDP data
– Liontrust unveils its full-year trading update
– ECB interest rate decision
Psigma Investment Management head of investment strategy Rory McPherson said: “Draghi’s press conference post the ECB meeting will be closely watched given the recent comments about more easing and also the big downward movement in bund yields.”
AJ Bell investment director Russ Mould said: “Could they possibly get any more dovish? Probably not, but then the Fed managed to out dove everyone last month.”
Thursday 11 April
– Man Group trading announcement
– Rics Housing Market Survey
Friday 12 April
– IMF bi-annual jamboree
– Arbuthnot Banking Group annual report
– JP Morgan Chase and Wells Fargo are due to report first quarter 2019 earnings in the US
