FTSE 100 hopes for Santa rally after week of decline -London Report
This week the market is looking to put aside last week’s pain, which saw the FTSE dip below the 6,000 mark again, as it prepares itself for a much heralded interest rate rise from the US Federal Reserve.
Don’t bet on anything other than volatility, however, with markets already nervous about what surprises a change in policy from the Fed might bring.
Before Fed chair Janet Yellen takes the stage on Wednesday there are some interesting company reports to look out for.
FTSE 250 chip maker Imagination Technologies will be reporting its half year results tomorrow.
In September, it warned the slowing Chinese market is taking its toll on sales, and analysts are now expecting revenue of £185m for the year and earnings before interest and tax of £13m – down from an earlier forecasts of £20m.
Fashion retailer SuperGroup, that hit on a winner with its Superdry jackets, is announcing interim results on Wednesday and the market is looking forward to some positive news from the company.
In November it boasted it would be reporting significant revenue growth for the first half of the year.
Also on Wednesday, electrical goods retailer Dixons Carphone has prepped the market for strong half-year results, boosted by smartphone and TV sales.
Dixons Carphone has already said its Black Friday sales were positive, though in investors will be hoping to get a look at some firm numbers for the key period.
Analysts at Numis reckon the company will post pre-tax profits up 35 per cent to £105m.
News lately has not been good for Premier Farnell, with investors hoping the operational review announced in July will soon stem the flow of profit warnings from the electronics distributor.
It’s putting out a trading update on Thursday, after the group cut its dividend by 40 per cent and announced plans to sell off its Akron Brass business.
Another key company statement to look out for is Trinity Mirror with a trading update on Friday.
Aside from the Fed interest rate decision macro economic data from the UK includes the latest consumer price and employment data due for release tomorrow and Wednesday, respectively.
Following it up we’ll have a reading on manufacturing sector activity in Europe on Wednesday.