Week ahead: Shortened trading week sees release of UK GDP, non-farm payrolls

(Sharecast News) - Next week looks set to be much quieter as UK markets head into the long Easter weekend. On Monday, UK mortgage approvals and net lending figures for February will be released, along with fourth-quarter GDP data and the latest economic sentiment indicator for the eurozone.

On Tuesday, third-quarter results from Nike are due, while UK corporate highlights will include full-year numbers from Irn-Bru maker AG Barr and Raspberry Pi, which makes high-performance, low-cost single-board computers.

On Wednesday, US retail sales figures for February will be released.

TD Securities said it's looking for retail sales to improve after contracting 0.2% month-on-month at the start of the year.

"Rebounds in the volatile auto and gas station sales should drive the upside after declining for two consecutive reports," it said. "Likewise for food services which likely rose for this first time since November. We also expect control group sales to stay in the positive, printing 0.4% m/m."

Although markets will be closed for Good Friday, the Bureau of Labor Statistics will publish the non-farm payrolls report for March, along with the unemployment rate and average earnings.

AJ Bell analysts Russ Mould and Danni Hewson said that with stock markets being buffeted by geopolitical events, the importance of a stable US labour market becomes even more paramount for investor confidence.

They noted that Bloomberg consensus expectations are for a modest rebound to around 50,000 jobs after February's surprise 92,000 job loss, with unemployment steady at 4.4%.

"A reading above 75,000 could ease recession fears, supporting risk assets, while another negative number will amplify the growing slowdown narrative," they said. "Meanwhile the Federal Reserve remains stuck between a rock and a hard place given its dual mandate to keep inflation at 2% while maintaining full employment."