Last Week in London

After a disappointing start, as better than expected US jobs data at the end of the previous week was offset by disappointing UK manufacturing data, the market made modest gains in this trading ahead of Thursday interest rate decision and the long Easter

The monthly meeting of the Monetary Policy Committee meeting saw interest rates left unchanged at 4.0% for a second successive month after a recovery in manufacturing faltered and the pound strengthened.

Expectations now are that rates will be raised by a further quarter point in May, when the Bank of England issues its next quarterly inflation forecast.

Britain's global trade deficit narrowed in February from a record level the previous month on increased exports of industrial goods and chemicals to the US.

The trade gap in goods fell to £4.25bn from a revised £5.45bn in January, better than the expected deficit of £4.6bn. Exports to the US rebounded 17% in February from the previous month, after falling 29% in January.

Faster economic growth in the world's largest economy helped compensate for sterling's 18% rally against the dollar over the past 12 months.

Overall, exports of goods rose 2.4% to £14.9bn while imports fell 4.3% to £19.2bn, with imports from the US dropping to their lowest since July 1995.

Over the week the All-Share and the FTSE 100 both gained a little over ½%, while midcaps and smallcaps were broadly flat. The strongest sector performance came from oil & gas, helped by a $2 rise in the crude oil price.

The oil price rose as a report showing a decline in US crude and gasoline reserves raised concerns that supplies may be running short for the world's biggest energy user, while increasing violence in Iraq led to fears over disruption to Middle Eastern supplies.

Elsewhere, consumer staples such as health, personal care and beverages also made headway, while the IT area accounted for the weakest performers.

House builders have benefited as borrowing rates close to 50 year lows have fuelled demand, with the market also underpinned by high employment.

William Hill (+0.2% to 515¾p), Britain's second largest bookmaker, were added to the benchmark FTSE 100 Index last week as a replacement for Amersham, the laboratory equipment maker being bought by General Electric of the US.

The market value of William Hill has almost doubled to £2.14bn in the past year, making it the 92nd largest UK company.

William Hill almost doubled profit in last year's second half after installing video gaming machines on which betting shop customers can play games such as roulette.

Betting shop operators are increasing profit by installing fixed odds betting terminals in their shops, allowing customers to bet on games such as virtual horse racing.

William Hill had 3,239 machines in its 1,586 UK shops at the end of 2003, each earning about £380 a week.

The monthly meeting of the Monetary Policy Committee meeting saw interest rates left unchanged at 4.0% for a second successive month after a recovery in manufacturing faltered and the pound strengthened.

Expectations now are that rates will be raised by a further quarter point in May, when the Bank of England issues its next quarterly inflation forecast.

Britain's global trade deficit narrowed in February from a record level the previous month on increased exports of industrial goods and chemicals to the US.

The trade gap in goods fell to £4.25bn from a revised £5.45bn in January, better than the expected deficit of £4.6bn. Exports to the US rebounded 17% in February from the previous month, after falling 29% in January.

Faster economic growth in the world's largest economy helped compensate for sterling's 18% rally against the dollar over the past 12 months.

Overall, exports of goods rose 2.4% to £14.9bn while imports fell 4.3% to £19.2bn, with imports from the US dropping to their lowest since July 1995.

Over the week the All-Share and the FTSE 100 both gained a little over ½%, while midcaps and smallcaps were broadly flat. The strongest sector performance came from oil & gas, helped by a $2 rise in the crude oil price.

The oil price rose as a report showing a decline in US crude and gasoline reserves raised concerns that supplies may be running short for the world's biggest energy user, while increasing violence in Iraq led to fears over disruption to Middle Eastern supplies.

Elsewhere, consumer staples such as health, personal care and beverages also made headway, while the IT area accounted for the weakest performers.

House builders have benefited as borrowing rates close to 50 year lows have fuelled demand, with the market also underpinned by high employment.

William Hill (+0.2% to 515¾p), Britain's second largest bookmaker, were added to the benchmark FTSE 100 Index last week as a replacement for Amersham, the laboratory equipment maker being bought by General Electric of the US.

The market value of William Hill has almost doubled to £2.14bn in the past year, making it the 92nd largest UK company.

William Hill almost doubled profit in last year's second half after installing video gaming machines on which betting shop customers can play games such as roulette.

Betting shop operators are increasing profit by installing fixed odds betting terminals in their shops, allowing customers to bet on games such as virtual horse racing.

William Hill had 3,239 machines in its 1,586 UK shops at the end of 2003, each earning about £380 a week.