Tuesday preview: US producer prices, Paragon Banking Group in focus

Investors' focus on Tuesday will be on producer price data in the US covering the month of May.

Rates of both headline and core producer price growth are seen slipping by two tenths of a percentage point to 10.8% and 8.6%, respectively.

In the UK, all eyes will be on the April employment report with the three-month annualised rate of increase in average weekly earnings seen picking up from 7.0% in March to 7.2% including bonuses.

Excluding bonuses on the other hand, average earnings growth is seen dipping by two tenths of a percentage point to 4.0%.

The rate of unemployment meanwhile is seen declining by one tenth of a point to 3.6%, but chiefly as a result of "further flows into into inactivity rather than job growth", according to Barclays Research.

"Solid labour market performance especially in terms of low unemployment and elevated vacancies will support the case for some MPC members to vote for a 50bp hike next week, although it should be noted that the BoE's central scenario is already for the labour market to further tighten over Q2 and Q3 with unemployment projected to be as low as 3.5% by Q3," said economists at Barclays Research.

Across the Channel, at 1800 GMT European Central Bank governing council member, Isabel Schnabel, is due to speak on euro area bond fragmentation at the Sorbonne.

Earlier, at 1000 GMT, Germany's ZEW institute will release its economic sentiment index for euro area in the month of June.

For Paragon Banking Group's first half results, UBS analyst Sanjena Dadawala believes the key is the sustainability of the lender's low - 10 basis point - loan losses into 2023 and beyond.

Nevertheless, the analyst anticipated Paragon's largely secured loan book to remain in good shape.

So too, investors will be looking for guidance as to recent increases in margins as interest rates in Britain rise materially, he said.

Consensus is for a 14% rise to £168.3m in net interest margins and a 17% jump in underlying profits before tax to £82.9m.

Tuesday 14 June

INTERIMS

Crest Nicholson Holdings, Foresight Sustainable Forestry Company, Paragon Banking Group

INTERIM DIVIDEND PAYMENT DATE

NOTTS.B.S. 7 7/8% PERM INT BEARING SHS

QUARTERLY PAYMENT DATE

Round Hill Music Royalty Fund Limited NPV

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Producer Price Index (US) (13:30)

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

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

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

Q3

Ferguson

FINALS

CML Microsystems, Discoverie Group, Iomart Group, OnTheMarket, Oxford Instruments, Palace Capital , Vianet Group

AGMS

Andrews Sykes Group, Coro Energy, Everyman Media Group , Fair Oaks Income Limited 2021 Shs NPV, IP Group, NB Private Equity Partners Ltd., Octopus Titan VCT , SDX Energy Inc. (DI), Somero Enterprises Inc. (DI)

TRADING ANNOUNCEMENTS

Bellway

UK ECONOMIC ANNOUNCEMENTS

Claimant Count Rate (07:00)

Unemployment Rate (07:00)

FINAL DIVIDEND PAYMENT DATE

Bank of Ireland Group (CDI), RHI Magnesita N.V. (DI)