Tuesday preview: Attention turns to UK inflation and Chinese GDP data

UK inflation and Chinese economic growth data will steal the limelight on Tuesday.

The UK’s consumer price index is expected to rise to 0.2% year-on-year in December from 0.1% in November. On a month-on-month comparison, CPI is forecast to remain at zero growth in December.

The Bank of England left its interest rates unchanged last week amid concerns about low inflation. The central bank is targeting inflation of 2%,

China’s gross domestic product is projected to increase 6.9% year-on-year and 1.8% month-on-month in the fourth quarter. China’s government is targeting 7% growth.

HSBC expects a 6.9% increase in fourth quarter GDP, driven by stronger infrastructure investment and the stabilisation in trade.

“The outperformance of automobile industry also supports the growth of industrial sector. That said, the outlook for the external sector remains uncertain and deflation will continue to weigh on growth in 2016, warranting more policy easing measures.”

China data on industrial production and retail sales are also due on Wednesday. Analysts predict an 11.3% increase in retail sales in the year to December. Industrial production is expected to have gained 6% in December from a year ago.

The figures will be under close scrutiny amid concerns about a slowdown in the world’s second largest economy.

Tuesday 19 January

INTERIMS
IG Group Holdings

INTERIM DIVIDEND PAYMENT DATE
International Greetings

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (EU) (09:00)
Consumer Price Index (GER) (07:00)
Current Account (EU) (09:00)
ZEW Survey (EU) (10:00)

Q4
Bank of America Corp.

FINALS
Bank of America Corp., Unilever

TRADING ANNOUNCEMENTS
Acacia Mining, BHP Billiton, Cairn Energy, Etalon Group Ltd GDR (Reg S), Evraz, Synety Group

UK ECONOMIC ANNOUNCEMENTS
Consumer Price Index (09:30)
Producer Price Index (09:30)
Retail Price Index (09:30)