The Week Ahead: HSBC, Sainsbury’s results, Federal Reserve rates decision

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New data on UK fundamentals will come out this week as well as major FTSE 100 firms’ results such as HSBC, easyjet and Royal Dutch Shell.

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

Monday 1 May

  • China – Markit/Caixin manufacturing purchasing managers’ index

Tuesday 2 May

  • George Osborne starts the role at London Evening Standard
  • UK Manufacturing Purchasing Managers’ Index – report
  • EU Unemployment Statistics
  • Germany – unemployment data

Wednesday 3 May

  • US Federal Reserve – interest rate decision
  • J Sainsbury (Q4 results)

The Share Centre investment research analyst Graham Spooner says: “The market will be focused mainly on two areas in these full-year figures from Sainsbury’s. Firstly, looking to see if the divergent performance of Argos and the rest of the group, as highlighted in March, has continued into the new financial year. Secondly investors will be interested in any comments on the outlook for this year given recent signs of rising inflation and falling retail sales.”

Thursday 4 May

  • UK Services Purchasing Managers’ Index – report
  • HSBC (Q1 results)

Spooner says: “Banking giant HSBC faces many of the same challenges as its peers in the sector including political and regulatory issues as well as the uncertainty of Brexit and a slowing Chinese economy. Final results in February came in below market expectations, as a result of lower revenues and write-downs, but the dividend was held.

“Good figures recently from peer Standard Chartered have raised expectations for HSBC’s own first quarter update, and rising US rates should also help the sector more broadly. Investors will want to see more progress on cost reductions but the yield remains one of the best.”

  • Royal Dutch Shell (Q1 results)

Spooner says: “With average oil prices in Q1 2017 ahead of the same period last year we should see an improvement in underlying profitability. We should also see comments around how the company has continued to reduce its costs of operations along with the synergies from integrating the BG operations.

“However, as the group continues to offload assets to pay down the debts we may see this impact on total production rates and therefore group revenues. It would be interesting to see if the short term issues within the refining market have improved.”

Friday 5 May

  • US Consumer credit data
  • easyJet results