Wednesday preview: US Fed meeting, Next in focus

All eyes on Wednesday would be on the US central bank's policy meeting and on just how hawkish the message that it delivered regarding monetary policy going forwards was.

In particular, recent survey data linked to labour demand, the housing market, business investment, manufacturing and wage pressures had softened, prompting speculation that a slower pace of rate hikes might be on the horizon.

The policy announcement was scheduled for after the close of trading in London, at 1900 GMT, with Fed President Jerome Powell's presser due to kick off roughly a half hour later.

Consensus was for another 75 basis point hike in the Fed funds target range to 3.75-4.0% and Barclays Research anticipated that some rate-setters might have argued in favour of a slower pace of hikes.

Nonetheless, Barclays was expecting no new signals in the policy statement while Powell was seen leaving his options open vis-a-vis the December meeting with both a 50bp or 75bp move possible - while emphasising data dependency.

Against that backdrop, at 1315 GMT, consultancy ADP would publish its estimate for US private sector payrolls in October (consensus: 195,000).

Across the Channel meanwhile, S&P Global was set to publish a final reading for its euro area manufacturing sector Purchasing Managers' Index covering the month of October, at 0900 GMT.

Due out as well were German unemployment figures covering that same month, at 0855 GMT.

No major economic releases were scheduled in the UK.

For Next's third quarter update, investors will be watching to see whether the fashion retailer remains on track to meet full-year profit guidance of £840m.

Worth noting, on 29 September the company cut its guidance for full price sales growth in the second half from 1% to -1.5%.

Nevertheless, in part, at the time the retailer was reacting to the sell-off in sterling, which it predicted would "prolong inflation, even once factory gates prices ease.

"It looks like we may be set to have two cost of living crises: this year a supply side-led squeeze, next year a currency-led price hike as devaluation takes effect."

Yet since then, much of that weakness in the pound had since reverted.

Wednesday 02 November

INTERIMS

Appreciate Group

INTERIM DIVIDEND PAYMENT DATE

Banco Santander S.A., HSS Hire Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)

Crude Oil Inventories (US) (14:30)

MBA Mortgage Applications (US) (11:00)

PMI Manufacturing (GER) (08:55)

PMI Manufacturing (EU) (09:00)

Retail Sales (GER) (08:00)

Unemployment Rate (GER) (08:55)

Q3

GSK

AGMS

Hansard Global, IDE Group Holdings, NCC Group

TRADING ANNOUNCEMENTS

Coca-Cola Europacific Partners (DI), Gem Diamonds Ltd. (DI), Gem Diamonds Ltd. (DI), Gem Diamonds Ltd. (DI), Morgan Sindall Group, Next, Smurfit Kappa Group (CDI)