Key readings on economic activity this week may tell traders whether their optimism in the global rebound is well founded, or not. And, as David Pollard reports, a positive set of numbers may drive share markets to even bigger gains.
Big industry may call the numbers this week. Traders waiting to see whether a recovery in the global economy is reality - or needs a reality check. Both China and Japan offer up industrial orders data - the US, industrial production - Japan also giving its latest growth snapshot. While the euro zone sees its Q1 GDP reading. After strong German data last week, France could still weigh on the overall picture. SOUNDBITE (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "Whilst we're getting a bit of a rebound there, I think it's the rebound in the sense from a basis effect of even weaker growth in prior years. I think it's very fragile." UK numbers too will be scrutinised for any sign that Britain's consumers are starting to pedal backwards. Unemployment in focus. Inflation and retail sales data searched for any sign of damage to an economy that, so far, is proving resilient in the face of Brexit. SOUNDBITE (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "The uncertainty, the weakness of sterling, inflation, is going to cause some economic pain, but I don't think we're seeing it quite just yet in actual economic data." Share markets, meanwhile, appear sold on the idea of just going up. SOUNDBITE (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "There's a lot of opportunity. The growth going on in parts of the world including in the United States and in Europe is undeniable. And that alone quite often is enough to actually stoke further gains in the markets." Close to record highs, even Donald Trump's failure to deliver on key election pledges for fiscal spending hasn't spoilt the mood - yet.