Tuesday preview: Employment report, Easyjet in focus

The focus on Tuesday will be on the UK employment referencing the month of November, alongside public sector borrowing figures for last month.

Travel & Leisure

8,142.59

16:54 04/11/24

-0.13%

-10.97

Data contained in the former is expected to show that the rate of growth in average weekly earnings remained at 3.3%.

Investors will also be keeping an eye out for any policy-relevant remarks from Bank of England Governor Mark Carney, who is attending the World Economic Forum, in Davos.

In the States, investors and traders returning after the long weekend will be greeted by data on existing home sales for the month of January.

The corporate earnings season is also due to continue at a frenetic pace, with IBM and Johnson&Johnson among the corporate heavyweights that are set to report.

Across the Channel meanwhile, the focus will be on the ZEW institute's widely-followed gauge of monthly economic confidence for the euro area.

Tuesday was also set to see a substantial pick-up in the flow of corporate updates in the UK, with EasyJet among those due to publish a statement on recent trading.

Analyst Kathryn Leonard at Numis was forecasting first quarter revenue growth of 13.7% at constant exchange rates to reach £1,294m, driven by a 18.2% increase in seats flown, together with a drag of 3.9% from revenue per seat due to a reversal of various one-off factors.

As an aside, the closure of Gatwick airport for several days before Christmas, as a result of the 'drone incident', will push up first half disruption costs, she also pointed out.

The state of the forward order book would also come under scrutiny, with markets expecting a shorter booking cycle on account of the uncertainty around Brexit, the analyst said.

That was also reflected in the discount in the shares' price-to-earnings multiple, which at 11.0 times' estimated fiscal year 2020 earnings were trading on a discount of about 10% versus their five-year average on that metric.

Tuesday January 22

INTERIMS

Accrol Group Holdings, IG Group Holdings

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Existing Home Sales (US) (15:00)

ZEW Survey (GER) - Current Situation (10:00)

ZEW Survey (GER) - Economic Sentiment (10:00)

FINALS

Velocity Composites

SPECIAL DIVIDEND PAYMENT DATE

Aberdeen Standard Asia Focus

EGMS