Wednesday preview: PBoC rate decision to steal focus on data-heavy day

With little in the way of corporate updates or results due on Wednesday, the focus will be firmly on economic data – and there will be a lot of it, from the UK and overseas.

Before markets open in Europe, traders will be watching the People's Bank of China as it makes its decision on the one-year and five-year loan prime rates. No changes expected to either, with the one-year rate likely to be maintained at the record-low 3.45% level, while the five-year rate should be kept at 4.2% for the fifth month in a row.

"But it’s worth keeping an eye on this release after the PBOC injected $112bn of new liquidity into the market last week via it’s one-year MLF facility," said analysts at Rabobank.

Consumer price index data in the UK is expected to show that the headline rate of annual inflation fell to 4.4% in November, from 4.6% the month before. Core inflation is tipped to ease to 5.6% from 5.7%.

The UK retail price index is also on tap in the morning, and is forecast to show that prices increased 0.2% last month after a 0.2% decline in October.

The rest of the day will see more economic indicators from Europe, including the GfK German consumer confidence survey, Germany's producer price index, eurozone construction output figures, eurozone consumer confidence and the DCLG UK house price index. Philip Richard Lane, executive board member of the European Central Bank, is also expected to make a speech.

Over in the US, markets will be watching the MBA mortgage applications report, existing home sales and consumer confidence data.

Wednesday 20 December

INTERIM DIVIDEND PAYMENT DATE

Aquila Services Group, Yu Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

PBoC Interest Rate Decision (China) (01:15)

Crude Oil Inventories (US) (15:30)

Current Account (EU) (09:00)

Current Account (US) (13:30)

Existing Home Sales (US) (15:00)

MBA Mortgage Applications (US) (12:00)

Producer Price Index (GER) (07:00)

GMS

RM Infrastructure Income, Societatea Energetica Electrica SA GDR (Reg S)

FINALS

Jersey Electricity 'A' Shares

SPECIAL DIVIDEND PAYMENT DATE

abrdn Asia Focus

AGMS

AVI Global Trust , Burning Rock Biotech Limited Ads (Each Repr 1 Class A Ord Usd0.0002), Focusrite, Northamber, Solgold

TRADING ANNOUNCEMENTS

Time Finance

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (07:00)

Producer Price Index (07:00)

Public Sector Net Borrowing (07:00)

Retail Price Index (07:00)

FINAL DIVIDEND PAYMENT DATE

Baillie Gifford Japan Trust, BlackRock Greater Europe Inv Trust, London Finance & Investment Group, Schroder BSC Social Impact Trust