Wednesday preview: UK jobs data, US inflation figures

UK labour market data on Wednesday will be closely scrutinised as the Bank of England weighs the best timing for an interest rate hike.

The Office for National Statistics is expected to reveal the unemployment rate for the three months to November held at 5.2% and that UK employers added 235,000 jobs.

Average weekly earnings are forecast to rise 2.1% during the period, following a 2.4% increase the previous three months.

“Pay growth will continue to slow in November, in part due to base effects, but should rise back over the coming months as these base effects fall away,” HSBC analysts said.

Jobless claims may have risen 2,800 in December, according to analysts’ estimates. The claimant count rate is forecast to remain at 2.3% in December.

The BoE last month decided to keep interest rates unchanged amid a slowdown in wage growth, a fall in the price in oil, a stronger pound and volatility in China.

BoE Governor Mark Carney on Tuesday said that the UK economy is not strong enough to contemplate raising interest rates.

“The year has turned and, in my view, the decision proved straightforward: now is not yet the time to raise interest rates,” he said in a speech. “The world is weaker and UK growth has slowed.”

Meanwhile US inflation figures are also due on Wednesday. Analysts expect the consumer price index rose 0.8% year-on-year in December, picking up from the previous month’s 0.5% growth. An improvement in CPI may be seen to give the Federal Reserve grounds to raise interest rates again at its next policy meeting on 27-28 January.

Wednesday 20 January

INTERIM DIVIDEND PAYMENT DATE
Charles Stanley Group, Sirius Real Estate Ltd.

QUARTERLY PAYMENT DATE
Assura

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (US) (13:30)
Crude Oil Inventories (US) (15:30)
Housing Starts (US) (13:30)
MBA Mortgage Applications (US) (12:00)
Producer Price Index (GER) (07:00)
ZEW Survey (GER) (10:00)

FINALS
Redx Pharma

AGMS
Diploma, Lowland Investment Co, Majedie Investments, Majedie Investments, Retail Charity Bonds Gldn Lne Hsing 4.375% Bds 29/07/21, Standard Life European Private Equity Trust

TRADING ANNOUNCEMENTS
Pets at Home Group , Wetherspoon (J.D.), WH Smith

UK ECONOMIC ANNOUNCEMENTS
Claimant Count Rate (09:30)
Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE
Hargreave Hale AIM VCT 1