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Finance

Introduction:
The UK 100 index had a strong performance in year 2006. Through carry out the fundamental analysis and technical, financial analysis, it could identify the cause of the FTSE 100 index movement and indeed the individual stocks within the index.

1.0 UK domestic economic analysis
?First quarter of year:
UK gross domestic product chained volume measure rose by 0.6 per cent in the first quarter of 2006. (National statistics,2006). Bank of England remain interest rate unchanged at 4.5% in the first quarter of the year. (Houseweb 2006) The inflation rate rose by 1.9 per cent in January, the largest upward effect came from transport, fuels and lubricants price changes. The inflation rate rose by 2.0 per cent in February largely caused by the price of the recreational items. The inflation rate rose by 1.8 per cent in March, largely due to the price of food and non-alcoholic beverages cut. (National statistics, 2006) The overall unemployment rate is 5.0 per cent over the first quarter of year. (National statistics, 2006)
?Second quarter of year
UK gross domestic product grew by 0.8 per cent in the second quarter. (Finfacts team, 2006). Bank of English remain the interest rate unchanged at 4.5% (Houseweb 2006). The inflation rate rose by 2.0% in April, 2.2 per cent in May and 2.5 per cent in June. The largest upward effect came from price increase of transport, housing, water, electricity, gas and other fuels. (National statistics, 2006) The unemployment rate is 5.3 per cent, up by 0.3 percentages from the previous quarter. (National statistics, 2006)
?Third quarter of year:
UK gross domestic product grew by 0.7 per cent in the third quarter of year. (National statistics, 2006) The Bank of England rose the interest rate by 0.25 per cent compare with pervious. (Houseweb 2006) The...