Thursday preview: Bank of England, Rolls-Royce in the spotlight

The market spotlight on Thursday was expected to be firmly on the Bank of England and its policy guidance.

Economists at Barclays Research anticipated that at noon the Monetary Policy Committee would announce a 75 basis points hike in Bank Rate to 3.0%.

Two MPC members were expected to dissent in favour of a smaller 50bp increase.

Significantly, Barclays believed that Bank's forecasts - assuming unchanged interest rates - would be for inflation to fall back beneath 2% towards the back end of its forecast horizon - "an acknowledgment that monetary policy is already restrictive".

Earlier during the session, at 0930 GMT, S&P Global was expected to confirm a decline in its UK services sector Purchasing Managers' Index from 50.0 for September to 47.5 in October.

Stateside, investors would be treated to a barrage of indicators, even as they continued to digest the previous night's fireworks at the Federal Reserve.

Key among those releases would be the Institute for Supply Management's services sector Purchasing Managers' Index for October (consensus: 55.9).

Readings for weekly jobless claims, third quarter unit labour costs and productivity and foreign trade all held the potential to move markets too, especially the former two.

Across the Channel meanwhile, European Central Bank President, Christine Lagarde, was scheduled to speak as part of an introductory panel at the Latvian central banls 2022 economic conference, from 0805 GMT.

Euro area unemployment figures for September were due to follow at 1000 GMT and the Norwegian central bank's latest interest rate decision at 0900 GMT.

In Asia, rate-setters in Malaysia would announce their latest interest rate decision overnight.

Among the top UK corporate names due to release third quarter results on Thursday was aerospace and defence engineer Rolls Royce.

For Michael Hewson, chief market analyst at CMC Markets UK, investors' biggest concern was the deterioration seen in the company's margins during the first six months of the year.

Investors also appeared to have expected a smoother diversification process away from civil aviation, Hewson said.

Defence was another weak spot, while the new markets unit had failed to generate any revenues thus far, even as its losses hit £48m.

Revenues on the other hand had picked up and the recent €1.6bn of net proceeds from the sale of ITP Aero would help reduce the company's debt pile.

As well, large engine flying hours were expected to rise from 60% at the end of the half to 70% by year end and to their pre-pandemic level by 2024.

Sales at its Power Systems division meanwhile beat forecasts for the first half, alongside strong order growth.

Thursday 03 November

INTERIMS

Nuformix, RS Group, Sainsbury (J), Trainline, Wizz Air Holdings

INTERIM DIVIDEND PAYMENT DATE

Anglo Asian Mining, Crestchic, EMIS Group, Hammerson, Me Group International, STV Group

INTERIM EX-DIVIDEND DATE

Bloomsbury Publishing, Burford Capital NPV (DI), Dunedin Enterprise Investment Trust, Hilton Food Group, Investec Investment Trust 3 1/2% Cumulative Preference Stock, LLoyds Banking Group 9.25% Non-Cum Irredeemable Pref Shares, LLoyds Banking Group 9.75% Non-Cum Irredeemable Pref Shares, London Security, Maven Income & Growth VCT, Schroder BSC Social Impact Trust, SThree, The Mission Group

QUARTERLY EX-DIVIDEND DATE

Picton Property Income Ltd

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Continuing Claims (US) (13:30)

Factory Orders (US) (14:00)

Initial Jobless Claims (US) (13:30)

ISM Prices Paid (US) (14:00)

ISM Services (US) (14:00)

PMI Composite (US) (13:45)

PMI Services (09:30)

PMI Services (US) (13:45)

Retail Sales (EU) (10:00)

Unemployment Rate (EU) (10:00)

Q3

Bank Pekao SA GDS (Reg S), Helios Towers , Lancashire Holdings Limited

FINALS

Gattaca, Up Global Sourcing Holdings

SPECIAL EX-DIVIDEND DATE

Bioventix

EGMS

Samsung Electronics Co Ltd (ATT) GDR (Reg S)

AGMS

Darktrace

TRADING ANNOUNCEMENTS

Derwent London, Howden Joinery Group, Smith & Nephew, TI Fluid Systems

UK ECONOMIC ANNOUNCEMENTS

BoE Interest Rate Decision (12:00)

BoE Interest Rate Minutes (12:00)

PMI Composite (09:30)

FINAL DIVIDEND PAYMENT DATE

Begbies Traynor Group, Mattioli Woods

FINAL EX-DIVIDEND DATE

Ashmore Group, EKF Diagnostics Holdings , European Opportunities Trust, Manchester & London Investment Trust, New Star Investment Trust, NWF Group, Renishaw, Ricardo, Schroder Japan Growth Fund, Springfield Properties , TheWorks.Co.Uk