Wednesday preview: US Fed, HSBC in the spotlight

HSBCSharecast / public domain image

HSBC Holdings

760.80p

17:09 20/12/24

-0.56%

-4.30p

Trading was likely to remain restrained on Wednesday as investors waited on the Federal Reserve's policy announcement after the close of London markets.

FTSE All-Share

4,421.11

17:04 20/12/24

n/a

At 1900 BST policymakers were expected to announce their decision to keep interest rates unchanged.

But it was anticipated that they would leave the door wide open for a likely first 25 basis point interest rate cut in September.

All eyes on the corporate side of things will be on banking heavyweight HSBC as it publishes its second quarter results.

UBS analyst Jason Napier was anticipating a 9% decline in second quarter net interest income to reach $8.51bn.

Adjusted profit before tax meanwhile was expected to come in at $8.3bn, alongside a common equity tier one capital ratio of 15.5%.

He also expected the lender would announce a $2.5bn share buyback programme helped by the sale of assets in Canada.

Yet in a research note sent to clients, Napier went on to add that: "HSBC's lending footprint isn't really growing at present - and we think loan growth is key to the stock's investment thesis."

Wednesday 31 July

INTERIMS

Conduit Holdings Limited Com Shs (DI), Endeavour Mining, HSBC Holdings, HUTCHMED (China) Limited, Rathbones Group, Reach, Restore, Rio Tinto, Rio Tinto, Shaftesbury Capital, Smurfit Westrock (DI), Taylor Wimpey

INTERIM DIVIDEND PAYMENT DATE

BP 8% Cum 1st Prf, BP 9% 2nd Prf, S and U 31.5% Prf. Cum. Prf 12.5P

QUARTERLY PAYMENT DATE

CT Private Equity Trust, Marble Point Loan Financing Limited NPV, Middlefield Canadian Income PCC, Real Estate Investors

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Chicago PMI (US) (14:45)

Crude Oil Inventories (US) (15:30)

FOMC Interest Rate (US) (19:00)

Import Price Index (GER) (07:00)

MBA Mortgage Applications (US) (12:00)

Retail Sales (GER) (07:00)

Unemployment Rate (GER) (08:55)

Endeavour Mining

FINALS

GRIT Investment Trust, Hargreaves Services, Sysgroup

SPECIAL DIVIDEND PAYMENT DATE

Personal Assets Trust

AGMS

Bezant Resources, Blackstone Loan Financing Limited (EUR), First Property Group, Quantum Blockchain Technologies, Revolution Beauty Group, Rockwood Strategic, T42 Iot Tracking Solutions NPV, Xtract Resources

UK ECONOMIC ANNOUNCEMENTS

BRC Like-For-Like Retail Sales (00:01)

Nationwide House Price Index (07:00)

FINAL DIVIDEND PAYMENT DATE

Fidelity China Special Situations , Renewi , Shires Income