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The UK economy saw no growth in February, following a surprise 0.4% jump in growth in January. A rise in construction activity and retail sales was largely offset by strikes from teachers and civil servants. Despite the flat performance, chancellor Hunt stated that the outlook was ‘brighter than expected’, noting that the economy had grown 0.1% in the three months to February.

ECB policymakers are reconsidering their plan for the path of interest rate hikes in light of last month’s banking turmoil but remain committed to reining in inflation. While panic at the time led to a slide in bank stocks worldwide, the market has calmed since, coming to a consensus that the failures were idiosyncratic in nature. Both the Austrian National Bank and Bank of Italy governors reflected on the events, noting that while inflation is still in full focus, the ECB’s Governing Council should rethink the scale of their approach.

Better than expected first-quarter earnings reports last Friday from JP Morgan, Citigroup and Wells Fargo helped to buoy sentiment in markets, which were the victim of significant turmoil last month due to banking sector chaos. The upbeat news speaks well of the US financial system and lessens the likelihood of any premature rate reductions. All eyes remain on the US ahead of this week, as investors look ahead for results from the likes of Bank of America and Morgan Stanley.