Wednesday preview: Fed minutes, Experian Group in focus

The focus in financial markets on Wednesday will be the release of the April Federal Reserve meeting minutes.

Investors are looking for confirmation that the policymakers are focused on the labour markets and that a majority see inflation pressures in 2021 as likely transitory.

Against that backdrop, the Office for National Statistics is due to publish a reading on UK consumer prices for April at 0700 BST.

Consensus is for an increase in the year-on-year rate of harmonised headline CPI from 1.0% to 1.6% as base effects kick in and after Ofgem lifted the energy price cap, Barclays Research said.

In particular, Barclays will be watching to see if clothing and footwear retailers have been able to exercise their pricing power as lockdowns began to be eased.

Nevertheless, the biggest uncertainty is around prices in hospitality, the broker said.

Over in the euro area meanwhile, European Central Bank chief economist, Philip Lane, is due to deliver a speech at the Dublin Climate Dialogues at 1650 BST.

In the corporate arena, UBS analyst Rory McKenzie anticipates that Experian Group will reassure shareholders on the outlook for high single-digit sales growth alongside its full-year numbers.

He also expects the firm will signal a resumption of its share buyback prorgramme with the potential for over $400m-worth of purchases per year.

Organic growth in the last quarter of the financial year was seen slowing to 5%, down from the 7% clip observed over the prior three-month stretch.

Full-year earnings before interest and amortisation meanwhile is pegged to come in at $1.37bn on a margin of 26.1%, for earnings per share of 102 cents and a flat dividend per share of 46.5 cents.

Leverage was seen reducingto 2.3 times earnings before interest, taxes, depreciation and amortisation.

Wednesday 19 May

INTERIMS

Future, Mitchells & Butlers

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (EU) (10:00)

Crude Oil Inventories (US) (15:30)

MBA Mortgage Applications (US) (12:00)

GMS

Invesco Enhanced Income Limited

FINALS

Escape Hunt , Experian, Great Portland Estates, LXI Reit , Ninety One , Premier Foods

AGMS

Alliance Pharma, BlackRock Latin American Inv Trust, Boku, Inc (DI) Reg S Cat 3/144A, Coats Group, Diaceutics , Dialight, Distribution Finance Capital Holdings, EKF Diagnostics Holdings , Funding Circle Holdings , IQ-AI Limited, Joint Stock Company National Atomic Company Kazatomprom GDR (Reg S) , K3 Business Technology Group, Keller Group, Permanent TSB Group Holdings (CDI), Plutus PowerGen, Regional REIT Limited, Riverstone Credit Opportunities Income, Safestyle UK , Sanne Group, Science Group , Verici DX

TRADING ANNOUNCEMENTS

Regional REIT Limited

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (07:00)

Producer Price Index (07:00)

Retail Price Index (07:00)

FINAL DIVIDEND PAYMENT DATE

Dunedin Enterprise Investment Trust, Kenmare Resources (CDI), Melrose Industries, Morgan Sindall Group, Rentokil Initial

Q1

MHP SE GDR (Reg S)