The Week Ahead: ECB meeting, EU GDP figures, UK trade data

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This week the European Central Bank is meeting in Frankfurt to decide on the minimum amount of quantitative easing needed to return inflation to target as well as in what size doses it should be administered.

Fund Strategy looks at some key events shaping the week and what to expect.

Monday 5 December

  • PMI tracking UK services and composite PMI

Last month, the PMI tracking services jumped to 54.5 from 52.6, the highest reading since January.

  • St. Modwen Properties (Q4 results)

Graham Spooner, investment research analyst at The Share Centre, says: “The share price came under further pressure on the back of the Brexit vote, as a result of the uncertainty that it created. The property sector has been put under the microscope ever since, with many experts predicting that pressures will continue to mount.

“The group, which specialises in the regeneration of brownfield sites, has three major projects; New Covent Garden development, a joint venture project with Vinci on London’s South Bank, Swansea University and a former car factory at Longbridge, near Birmingham. An update on the group’s outlook, especially for London will be worth noting for investors.”

Tuesday 6 December

  • Record of last FPC Meeting – Bank of England
  • M&A involving UK companies, July to September 2016 – Office for National Statistics
  • EU GDP and main aggregates, Q3 – Eurostat
  • Economic Review – Office for National Statistics
  • PMIs tracking services and composite PMIs for Eurozone, US and China

Wednesday 7 December

  • Index of production, October – Office for National Statistics

Thursday 8 December

  • Governing Council of the ECB: monetary policy meeting in Frankfurt
  • TUI (Final results)

Spooner says: “Tourism group TUI is entering the most critical part of its trading year as many of its customers begin to think about and book next year’s summer holiday. In September the company said it was confident of delivering a 12 to13 per cent rise in full year earnings, ahead of the 10 per cent previously forecast.

“It also reported that revenue for this winter season was up 11 per cent with trading in the UK especially strong. Investors will be focusing on any further update on that as well as checking to see if the cruise business is still performing well. There may also be further details of the new European airline joint venture with Etihad.”
Friday 9 December

  • UK trade, October – Office for National Statistics
  • Construction output Great Britain, October 2016 – Office for National Statistics