Wednesday preview: US corporate results, EasyJet in the spotlight

Investors' focus on Wednesday was expected to be on the latest corporate results, especially on the other side of the Pond in the US.

In particular, overnight, US technology giants Microsoft and Texas Instruments were to provide updates on their second and fourth quarter performance, respectively.

They would be followed the next day by the likes of Boeing and Tesla.

On the corporate side of things, EasyJet was scheduled to post its first quarter numbers.

In the opinion of Michael Hewson, chief market analyst at CMC Markets UK, the carrier's Q1 figures will act as a "decent bellwether" as to if the company will be able avoid the problems encountered during the previous summer.

Last November, the low-cost airline post its third annual pre-tax loss in a row to the tune of £178m, although that was far better than the £1.1bn of red ink incurred in 2021.

EasyJet shares had nonetheless soared since then.

Its full-year load factor had recovered to 85.5%, against 72.5% during the prior year, but remained below the 91.5% observed in 2019, before the pandemic.

Fuel costs for the first half were 74% hedged, up from 69% a few weeks before, Hewson pointed out, and by 51% for the back half of 2023.

EasyJet had also guided towards 38m seats flown in the first six months of 2023, for a 25% rise on the year and anticipated a further 9% increase year-on-year in the back half of 2023.

In economic news meanwhile, the spotlight would be on the prestigious IFO Institute's gauge of German business confidence for January.

Consensus was for a further moderate improvement in sentiment.

Of particular interest would be the survey's findings on sentiment within manufacturing given the weak outcome for the sector in S&P Global's factory Purchasing Managers' Index published the day before.

Wednesday 25 January

FINALS

Watkin Jones

INTERIMS

Scancell Holdings, Hargreaves Services

TRADING ANNOUNCEMENTS

Cmc Markets, Conduit Holdings Limited Com Shs (DI), easyJet, Lords Group Trading, Tullow Oil, Hvivo, Quilter, Fresnillo, TI Fluid Systems

AGMs

Majedie Investments, Infrastructure India, Lowland Investment Co

INTERIM DIVIDEND PAYMENT DATE

JPMorgan Global Markets Emerging Income Trust, Baltic Classifieds Group

QUARTERLY EX-DIVIDEND DATE

Marsh & Mclennan Cos Inc

QUARTERLY PAYMENT DATE

General Electric Co (CDI)

UK ECONOMIC ANNOUNCEMENTS

Producer Price Index (07:00)

International Economic Announcements

IFO Business Climate (GER) (09:00)

IFO Current Assessment (GER) (09:00)

IFO Expectations (GER) (09:00)

MBA Mortgage Applications (US) (12:00)

Crude Oil Inventories (US) (15:30)