Who is going shopping ? Somebody must be, as figures showed retail sales in April up 0.3 per cent from March.

More significantly, sales are up 6.1 per cent from the same month a year ago. This is broadly in line with economists' forecasts and helps to explain the fiscal tightening of increased interest rates.

Retail sales have been high since January, as stores have exaggerated the New Year sales well into the year. This week sees a plethora of major high street names reporting results.

Today sees results from Marks & Spencer and the focus may well be on whether fourth quarter sales have weakened what would otherwise be a respectable performance.

"Lucky Luc" Vandervelde is no longer drawing a salary in M&S shares, having parted company as chairman a few weeks ago. There may also be news on the next chairman. Among the runners and riders are Barbara Cassani (until last week the head of London's Olympic bid) and ex-Rentokil boss Sir Clive Thompson.

Thursday sees Boots announce results. The best that can be said is that the dividend looks secure and the yield has its attractions.

As the kick-off to Euro 2004 approaches, expect luxury brand Burberry to announce impressive results, with profits likely to be £20m up on last year at £132m. Any self-respecting football hooligan is always clad in Burberry. The brand is also the choice of Victoria Beckham and Cherie Blair.

In the music department, EMI started the week off yesterday. Profits were down, but the big cost-cutting programme under way should see a bounce in the current year. "Things can only get better" is becoming something of a well-worn record round at EMI.

The interest rate increase at the start of the month sent jitters into the market, and saw the FTSE 100 Index fall by almost four per cent. There would appear to be a support level, however, at 4400, and buyers have been tempted back in. UK stocks remain relatively cheap, and a return to the 4550 level is clearly not out of the question. If this was to happen in the space of a few weeks, we could see values more than three per cent higher and climbing.

Mining stocks continue to be classic trading stocks. The big factor remains the voracious demand from China. A traditional strategy of buy and hold does not apply with these stocks.

Although Anglo American is the biggest UK listed mining company, Rio Tinto, as the second largest, is the most actively traded. When looking at the share price graph, the jumpy nature of its fortunes allow astute investors to buy in close to the 1200p level and bail out at close to the 1500p level. This allows a 25 per cent profit, but this would appear to be available year in, year out.

Commodity prices are dictated to a large extent by scarcity and currency factors. As currency trends can be predicted reasonably well, it is not too difficult to take advantage.

May is the month of the largest dividend payouts. This explains, to some extent, where the phrase "Go away in May" comes from. But not all of this money is paid away, particularly among the institutional investors. The large cash balances need to be reinvested back into the market, giving further support.

For investment advice contact Anthony Platts on 01642 608855.

Published: 25/05/2004