Wednesday preview: Fed meeting minutes, Lloyds in the spotlight

Investors' attention on Wednesday would be on the minutes of the US central bank's 31 January-1 February policy meeting.

Economists at Barclays Research said that the minutes would provide more colour around participants' endorsement of the December Summary of Economic Projections, especially as regarded the 5.1% median dot for 2023.

"We will be looking for signs that some members revised their views between the December SEP and the February meeting, since Powell refrained from reaffirming the December SEP at the press conference," they said.

"We also expect to see a discussion of financial conditions and their implications."

Across the Channel meanwhile, investors would be waiting on the prestigious IFO institute's business confidence index for Germany covering the month of February (consensus: 91.0).

Also due out were final readings for German and Italian consumer prices in January.

In Asia, the market spotlight would be on wholesale services price data for January in Japan.

Rate-setters in New Zealand meanwhile were expected to announce a 50 basis point interest rate hike in the official cash rate to 4.75%.

No major economic releases were due out in the UK.

For Lloyds's full-year results, UBS analyst Jason Napier had penciled in a 18% jump in net interest income to £13.12bn, although underlying profit before tax and excluding remediation expenses was seen declining 14% £7.57bn.

Fourth quarter net interest income meanwhile was seen rising by 24% to £3.59bn (consensus: £3.57bn), while profits before tax and remediation were pegged at £2.01bn or down by 18% on the year (consensus: £1.98bn).

"The shares have underperformed primarily due to concerns over the economic outlook and its heavy reliance on the UK domestic market, particularly mortgages and consumer credit," Michael Hewson, chief market analyst at CMC Markets UK said.

"Despite these concerns the bank has consistently outperformed while increasing profits to the point its more profitable now that it was back in 2019 when the shares were much higher."

Hewson also noted recent calls from some quarters for a windfall tax to be levied on lenders' profits.

Wednesday 22 February

INTERIMS

Avingtrans, Transense Technologies

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Crude Oil Inventories (US) (15:30)

IFO Business Climate (GER) (09:00)

IFO Current Assessment (GER) (09:00)

IFO Expectations (GER) (09:00)

MBA Mortgage Applications (US) (12:00)

Q4

TBC Bank Group

FINALS

Conduit Holdings Limited Com Shs (DI), Hochschild Mining, Lloyds Banking Group, Primary Health Properties, Rio Tinto, Synectics, TBC Bank Group, TBC Bank Group, The Renewables Infrastructure Group Limited

AGMS

Barkby Group , Gooch & Housego, Inspirit Energy Holdings, RWS Holdings, Tharisa (DI)

FINAL DIVIDEND PAYMENT DATE

Dewhurst Group, Dewhurst Group 'A'NON.VTG