Tuesday preview: US durable goods orders, BP in focus

The market spotlight on Tuesday will shift back towards the US, given a sparse data calendar in other regions, where a reading on durable goods orders is due out.

America's Department of Commerce is expected to report a 5.0% increase for June following May's 8.0% bounce back.

Across the Channel meanwhile, the main releases to look it for are French budget figures for June and a reading on euro area producer prices for that same month.

No major economic releases are scheduled in the UK.

Further afield, rate-setters in Australia are due to meet to decide on policy, with readings on foreign trade and retail sales for June also scheduled for release.

On the corporate front meanwhile, all eyes will be on BP, with analysts at Morgan Stanley expecting that the oil giant will slash its dividend payout by half.

Analyst Martijn Rats is forecasting negative operating income for the second quarter, driven by weakness in the Exploration and Production sector.

Second quarter net income is seen printing at -$8.2bn (consensus: -$6.8bn) with earnings before interest and taxes of -$9,28bn anticipated (consensus: -$7.78bn).

Contributing to the former, BP was expected to book large non-cash impairment charges on its property, plant and equipment together with write-offs on exploration intangibles.

Production meanwhile is pegged to fall by 5% quarter-on-quarter and average realised oil prices by 45%, although natural gas prices are expected to have risen by 24%.

According to Rats, management's comments around the dividend and gearing would be "crucial".

"Also, we look for comments on financial indicators such as capex and cash flow, and progress on the company's asset disposal programs."

Tuesday 04 August

INTERIMS

Brave Bison Group, Calisen , Direct Line Insurance Group, Keller Group, Meggitt, Rotork, Spectris

Q2

BP

TRADING STATEMENTS

EasyJet

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Current Account (GER) (07:00)

Factory Orders (US) (15:00)

Producer Price Index (EU) (10:00)

FINALS

Diageo, NWF Group, Science Group

AGMS

Babcock International Group, GoldStone Resources Ltd, Pathfinder Minerals , Record, Sysgroup, W H Ireland Group

FINAL DIVIDEND PAYMENT DATE

Johnson Matthey, TR Property Inv Trust