Week ahead: Russia-Ukraine conflict to drive market swings in City

Wild market swings are expected to characterise the week ahead in the City as investors respond sharply to developments in the Russia-Ukraine conflict.

Last week, the FTSE 100 registered its worst day in 20 months on Thursday, the day Russian troops flooded into Ukraine, before staging a comeback on Friday to end the week down just over 0.3 per cent.

The incursion intensified over the weekend, with Ukrainian soldiers mounting a fierce defensive that scuppered Moscow’s plans to rapidly seize Kyiv.

A flurry of big corporate final results and flagship economic data littered throughout the week is also likely to play on investors minds.

FTSE 100-listed outsourcer Bunzl posts finals tomorrow.

New consumer credit data published by the Bank of England on Tuesday will be closely scrutinised for any signs of Brits dipping into their savings or taking on debt to maintain spending levels amid the tightening cost of living squeeze.

If the data reveals a dip in consumer savings, it will “validate that the cost of living crisis unfolding is forcing households to tap into accrued savings as inflation sits at multi-decade highs,” according to Sanjay Raja, senior economist at Deutsche Bank.

On Wednesday, miner and FTSE 100 constituent Polymetal International, which has a large presence in Russia, will publish finals. Traders will be examining any forward looking statements breaking down the possible impact on the miner’s bottom line from the conflict.

Broadcaster ITV updates markets on Thursday, with analysts pencilling in a sharp rebound in advertising revenue over the last year compared to 2020.

Final PMIs for the manufacturing, services and construction sectors are published this week and will firm up evidence indicating the economy bounced back from the brief Omicron and Plan B hit.