Today’s figures from the Office for National Statistics showed growth in Q4. It was widely expected that UK would finally crawl out of recession and most of the economists were preticting growth of 0.4%. The shock was that UK growth was only 0.1%, thus sending FTSE100 plummeting over 1.5% along with the pound tumbling against major currencies.
Are there any positive to take from this recovery, slow, but still recovery? It is the question that plays on everybody’s mind, are we really out of the recession, as Q4 figures include Chrismas and New Year sales, and considered to be the most important period of the year for many retailers. As many retailers boasted great sales during the Xmas period it was no surprise that many expected UK to grow at least 0.4%.
Another important point to make is that Labour government spent enormous amount of money on stimulus packages to prop up the economy and quantitive easing from the Bank of England 0.1% growth really disappoints. As we have only 100 days left before general election do not expect the government to spend much more money in the near future. It’s also widely expected that the Bank of England will halt its asset buying program.
So what should we expect from Q1 2010? It surely will be a bumpy ride on the stock markets. Many retail traders in the UK take full advantage of financial spread betting to exploit the volatile markets and make profits on falling and rising markets with short term positions. Following Q4 figures noone will be really surprised to see negative growth in Q1 2010 and financial spread betting is an easy and cheap way to bet on the falling markets.