Wednesday preview: Eurozone deflation on the cards, analysts predict
Updated : 16:58
The spotlight will shine on Eurozone inflation figures on Wednesday as the European Central Bank’s (ECB) policy meeting looms.
Analysts predict euro-area consumer prices fell 0.1% year-on-year in December after a 0.3% gain a month earlier.
With the threat of deflation, the ECB is under mounting pressure to take more action.
Investors are speculating as to whether the central bank will introduce full-blown quantitative easing at its 22 January meeting to address price instability and the fragile economy.
German jobs data is also due out, with analysts predicting unemployment fell by 6,000 in December and the jobless rate remained unchanged at 6.6%.
German retail sales may have risen 0.6% year-on-year in November after a 1.7% increase a month earlier, according to forecasts.
In corporate news, Sainsbury releases a trading update amid a supermarket price war that has been hurting the UK’s so-called “Big Four”.
The market widely predicts negative like-for-like sales from Sainsbury.
Builder Galliford Try, on the other hand, is expected to deliver a positive first-half trading statement driven by housing activity, according to Numis.
Wednesday 7 January
INTERIM DIVIDEND PAYMENT DATE
3i Group, British Smaller Companies VCT, De La Rue, National Grid, Norcros, Sepura, Solid State
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
FOMC Interest Rate Minutes (US) (19:00)
PMI Construction (GER) (08:30)
PMI Retail (EU) (09:10)
Unemployment Rate (GER) (08:55)
GMS
Petards Group
IMSS
Caledonia Investments
EGMS
Trading Emissions
TRADING ANNOUNCEMENTS
Robert Walters, Sainsbury (J)
UK ECONOMIC ANNOUNCEMENTS
BRC Shop Price Index (00:01)
New Car Registrations (09:30)