Wednesday preview: US Presidential inauguration, Dixons Carphone in focus

Financial markets' focus in the middle of the week will shift to the newly-elected US President, Joe Biden's, inauguration.

His speech will be carefully parsed by analysts in the City who are looking for clear steer on the incoming administration's policy priorities for the next four years.

Against that backdrop, at 0700 GMT the Office for National Statistics is scheduled to publish consumer price data for December.

Economists at Barclays are forecasting a one tenth of a percentage point increase in the year-on-year rate of change, to 0.7% from 0.6% in the month before.

Thereafter, headline CPI is expected to continue rising gradually before jumping in April, as base effects kick in.

A final reading on euro area inflation is also due for release, at 1000 GMT, but inflation in the single currency block is far lower, having printed at -0.3% year-on-year in November and it was expected to remain that way in December, alongside equally depressed price pressures at the core level.

Not to lose sight of, the European Central Bank's governing council was set to meet to decide on monetary policy the next day.

Over in the corporate space, Dixons Carphone was among the corporates set to update investors.

Ahead of its third quarter trading statement, CMC Markets UK's Michael Hewson noted that the consumer electricals and mobile retailer had already a posted a sharp drop in full financial year mobile sales last summer.

Hence, that segment, which was the worst hit by the pandemic, now accounted for under a fifth of the company's sales.

Yet even back then, topline growth across the remainder of its business lines was "decent [...] across the board".

Against that backdrop, Hewson added: "Since the record March lows the shares have recovered a good proportion of their lost ground year to date, but still remain 20% down on the year, however a good pre-Christmas period and the news about a vaccine means that the outlook is much more positive than it was a couple of months ago, despite the November lockdowns."

Investors will also be digesting the latest quarterly update from US streaming video giant Netflix which was due to publish results after the close of trading on Wall Street on Tuesday evening.

Wednesday 20 January

INTERIMS

Van Elle Holdings

INTERIM DIVIDEND PAYMENT DATE

Ventus VCT D Shs, Ventus 2 VCT, Ventus 2 VCT 'C' Shares, Ventus 2 VCT D Shs, Ventus VCT, Ventus VCT 'C' Shares

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (EU) (10:00)

Crude Oil Inventories (US) (15:30)

GFK Consumer Confidence (GER) (07:00)

MBA Mortgage Applications (US) (12:00)

Producer Price Index (GER) (07:00)

GMS

Sabien Technology Group

AGMS

Diploma, Edinburgh Worldwide Inv Trust, Majedie Investments, Prairie Mining Limited, Residential Secure Income, WH Smith

TRADING ANNOUNCEMENTS

Antofagasta, BHP Group, Burberry Group, Cairn Energy, City of London Investment Group, CMC Markets, Diploma, Global Ports Investments GDR (REG S), Wetherspoon (J.D.), WH Smith

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (07:00)

Producer Price Index (07:00)

Retail Price Index (07:00)