Tuesday preview: UK wage, unemployment data in focus

On what's set to be another quiet day for corporate earnings, all eyes will be focused firmly on UK economic data to hopefully shed some light on what the Bank of England's next move with interest rates.

Labour-market figures for July will be released on Tuesday morning at 0830 BST, with the three-month moving unemployment rate predicted to have held steady at 4%. The year-on-year change in the three-month average for weekly earnings is also expected to be unchanged from June at +7.3%.

Expect a lot of chatter surrounding Wednesday's UK inflation data for July for more hints on what could be on the cards for the BoE's next policy meeting.

"The strength of these numbers likely to be a key factor as to whether we might be able to avoid further rate rises. The main question will be by how much will inflation fall as the effect of the lowering of the energy price cap gets factored into the July numbers," said Michael Hewson, chief market analyst at CMC Markets UK.

In the US, retail sales figures for July will be out on Tuesday, and are expected to show that growth picked up from 0.2% to 0.4% last month.

The market is keeping its eye fixed on US economic data after mixed inflation figures last week did little to settle investors' fears about whether or not the Federal Reserve will pause hiking interest rates at its next policy meeting.

Elsewhere, the ZEW Indicator of Economic Sentiment is due out in Germany, with the current conditions index expected to worsen to -62 in August, from -59.5 in July. The economic expectations index is expected to change to -14.4 from -14.7.

Lastly, in the US, as second-quarter earnings season starts to wind down, eyes will turn to the last remaining companies on the bill. Retail heavyweights Home Depot, Walmart and Target and all due to report this week, with Home Depot up first on Tuesday.

Tuesday 15 August

INTERIMS

Convatec Group , Georgia Capital , Just Group, Kenmare Resources (CDI), MTI Wireless Edge Ltd.

INTERIM DIVIDEND PAYMENT DATE

Dewhurst Group, Dewhurst Group 'A'NON.VTG

QUARTERLY PAYMENT DATE

Marsh & Mclennan Cos Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Business Inventories (US) (15:00)

Import and Export Price Indices (US) (13:30)

Retail Sales (US) (13:30)

Retail Sales Less Autos (US) (13:30)

ZEW Survey (EU) - Economic Sentiment (10:00)

ZEW Survey (GER) - Current Situation (10:00)

ZEW Survey (GER) - Economic Sentiment (10:00)

Q2

Georgia Capital

SPECIAL DIVIDEND PAYMENT DATE

Invesco Select Trust Balanced Risk Alloc Shs

AGMS

Challenger Energy Group, Primorus Investments

TRADING ANNOUNCEMENTS

Kenmare Resources (CDI)

UK ECONOMIC ANNOUNCEMENTS

Claimant Count Rate (07:00)

Unemployment Rate (07:00)

FINAL DIVIDEND PAYMENT DATE

Tatton Asset Management