Irish bailout and Korean tensions affect market sentiment

The financial foreign exchange markets were dominated last week by Irish debt concerns and escalating tensions on the Korean peninsula. Ireland's decision to accept a large EU bailout failed to cheer investors due to eurozone debt contagion fears, with Portugal and Spain the next likely dominos to fall.

Negative sentiment was compounded on Tuesday with the news that North Korean artillery shells left four dead on a South Korean island. Geopolitical uncertainty from both events weighed on the markets with the US Dollar resuming safe-haven statues and Gold prices rising.

Last week ended with UK house prices falling by 0.8% month-on-month in November, down 1.1% on the year, as the seasonal slowdown in the housing market seems to have arrived a month early. The data, according to Hometrack, shows that housing demand is falling at the fastest rate for 20 months.

There's a wealth of UK economic data to cram in before the end of the year and Monday witnesses the release of money supply figures, mortgage approvals and consumer credit data.

On Tuesday keep an eye on the latest consumer confidence numbers, while manufacturing and construction data midweek will be watched closely.

It's also a full roster across the Atlantic, where investors' attention will focus on the Fed's Beige Book on Wednesday, and Friday's non-farm payrolls.