Wednesday preview: US Fed, UK homebuilders in focus
Financial markets worldwide were expected to tread a cautious path on Wednesday until after the announcement of the US central bank´s policy announcement which wasn´t due until after the close of trading in London.
FTSE 100
8,328.72
16:34 19/09/24
FTSE 250
21,162.71
16:59 19/09/24
FTSE 350
4,600.84
17:09 19/09/24
FTSE All-Share
4,556.59
16:59 19/09/24
Household Goods & Home Construction
14,980.86
17:09 19/09/24
Media
12,711.13
17:09 19/09/24
Rightmove
696.00p
16:55 19/09/24
Taylor Wimpey
168.85p
16:40 19/09/24
Somewhat ironically, the possibility existed that rate-setters at the Federal Reserve would provide little in the way of a surprise for interest rate expectations in the US, some economists believed.
"We believe it unlikely that the July FOMC statement will contain a notable signal about the likelihood for a rate hike in September (our base case). We see Chair Yellen’s scheduled appearance at Jackson Hole on August 26 as a more likely setting for any shift in messaging," was the view from economists at Barclays Research.
Acting as a backdrop, throughout Wednesday morning reports from Germany, Italy, Sweden and the UK were set to shed some light on consumers´ initial reaction to Britain´s decision to exit the European Union.
The Confederation of British Industry´s Distributive Trades Survey was scheduled for release at 11:00 BST.
To take note of, the latest weekly statistics on commercial oil inventory levels Stateside, at 15:30 BST, also held the potential to move markets via its impact on oil prices - in the light of recent weakness - and indirectly on the wider commodities complex.
On the company front, interims from Rightmove and Taylor Wimpey might shed some light on prospects for UK homebuilders.
Analysts at Numis expected property website owner Rightmove to unveil sales of £103.3m, adjusted operating profits of £77.5m and an underlying adjusted EPS (pre option and any buyback assumption) of 64.6p.
As for Taylor Wimpey, the first housebuilder to report this earnings season, markets´ focus would be on the company´s trading since the 23 June referendum vote, Numis analyst Chris Millington said in a research report sent to clients on 26 July.
"Whilst we expect the housing market to witness some slowing in volumes (i.e. sales rates), we think that prices are likely to remain firm (outside prime Central London) due to the lack of stock in the market (both new build and second hand) and also highly affordable mortgage rates. We think that if the market sees a protracted slowdown in response to lower levels of consumer confidence, then it is likely that the government will look at ways to stimulate activity," he said.
Wednesday July 27
INTERIMS
Burford Capital , Dignity, ITV, Jupiter Fund Management , Lancashire Holdings Limited, Nord Gold SE GDR (Reg S), PJSC Megafon GDR (Reg S), Quartix Holdings , Rightmove, Shawbrook Group, Staffline Group, Tarsus Group, Taylor Wimpey, Tullow Oil
INTERIM DIVIDEND PAYMENT DATE
Netcall
QUARTERLY PAYMENT DATE
Assura
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Crude Oil Inventories (US) (15:30)
Durable Goods Orders (US) (13:30)
GFK Consumer Confidence (GER) (07:00)
M3 Money Supply (EU) (09:00)
MBA Mortgage Applications (US) (12:00)
Pending Homes Sales (US) (15:00)
Q2
Antofagasta, ARM Holdings, GlaxoSmithKline, Lancashire Holdings Limited, Nord Gold SE GDR (Reg S), PJSC Megafon GDR (Reg S)
FINALS
Renishaw
SPECIAL DIVIDEND PAYMENT DATE
Arbuthnot Banking Group, Secure Trust Bank, Stock Spirits Group
EGMS
Ryanair Holdings
AGMS
British Smaller Companies VCT, Circle Oil, Flybe Group, Invesco Income Growth Trust, Market Tech Holdings Limited , Norcros, Providence Resources, Snoozebox Holdings, Trifast, Weiss Korea Opportunity Fund Ltd, Xcite Energy Ltd. (CDI)
TRADING ANNOUNCEMENTS
Mitchells & Butlers
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
GDP (Preliminary) (09:30)
Index of Services (09:30)