Daily Financial Market Outlook

Financial markets will focus on the US FOMC meeting this week (Tuesday), which is expected to keep interest rates unchanged at a 0-0.25% range and to reiterate that rates will remain low for an 'extended period'. Given continued improvements in financial market sentiment, there is a risk (though probably less than evens) that Thomas Hoenig may be joined by another FOMC member in voting against the 'extended period' phrase.

Today's data will provide a further steer for the financial markets regarding the strength and sustainability of the global economic recovery. The key data releases are US industrial production and the Empire manufacturing survey, which are likely to confirm a gradual pace of recovery. The UK and European calendar is quiet today

Chart: US data expected to confirm a gradual pace of economic recovery

Lloyds TSB Bank
http://www.lloydstsbfinancialmarkets.com

Disclaimer: Any documentation, reports, correspondence or other material or information in whatever form be it electronic, textual or otherwise is based on sources believed to be reliable, however neither the Bank nor its directors, officers or employees warrant accuracy, completeness or otherwise, or accept responsibility for any error, omission or other inaccuracy, or for any consequences arising from any reliance upon such information. The facts and data contained are not, and should under no circumstances be treated as an offer or solicitation to offer, to buy or sell any product, nor are they intended to be a substitute for commercial judgement or professional or legal advice, and you should not act in reliance upon any of the facts and data contained, without first obtaining professional advice relevant to your circumstances. Expressions of opinion may be subject to change without notice. Although warrants and/or derivative instruments can be utilised for the management of investment risk, some of these products are unsuitable for many investors. The facts and data contained are therefore not intended for the use of private customers (as defined by the FSA Handbook) of Lloyds TSB Bank plc. Lloyds TSB Bank plc is authorised and regulated by the Financial Services Authority and is a signatory to the Banking Codes, and represents only the Scottish Widows and Lloyds TSB Marketing Group for life assurance, pension and investment business.