The Week Ahead: Marks & Spencer results, Federal Reserve minutes, UK GDP

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Analysts say expectations of a US rate hike in June are high, so investors will look closer at this week’s minutes from the Federal Open Market Committee.

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

Monday 22 May

  • Eurogroup Finance Ministers meeting

Tuesday 23 May

  • European Business Summit
  • Property Transactions in the United Kingdom

Wednesday 24 May

  • Dixons Carphone (Q4 trading statement)
  • Marks & Spencer (Final results)
  • FOMC Minutes Meeting of May 2 and 3

The Share Centre investment research analyst Graham Spooner says: “The FED’s FOMC elected to keep US interest rates on hold earlier this month, but expectations of a US rate hike in June are high. Do today’s minutes lend support to these expectations? The last time US interest rates went up was in March, when they were increased from 0.75 per cent to 1 per cent.”

Thursday 25 May

  • UK GDP, second estimate: January to March 2017 – Office for National Statistics
  • Business investment in the UK, provisional: January to March 2017 – Office for National Statistics
  • UK index of services: March 2017 – Office for National Statistics

Friday 26 May

  • Intertek (Q1 trading update)

Spooner says: “We have long liked this low profile company who are now trading at an all-time high having generated strong sales and earnings growth both organically and through acquisitions. The global quality assurance market continues to grow as a result of increasing regulatory, quality and safety standards in both developed and developing markets.

“Consensus expectations are that last year’s momentum has followed through in the first quarter and we will continue to the see the benefits of sterling’s weakness. The Resource division however faced a tough year so it will be interesting to see if there has been any improvement in infrastructure investments in the commodity sector.”