The Week Ahead: MPC meeting, UK PMIs, HSBC and RBS results

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Monday 31 July

  • UK manufacturing PMIs

The first of the trio of PMIs for July being released this week. Last month the manufacturing PMI fell to 54.3, a three month low, the PMI for construction fell to 54.8, and services fell to 53.4, the lowest reading since February.

  • HSBC Q2 results

The Share Centre’s Graham Spooner says: “The performance of the shares over the last 12-months has been impressive. This combined with an attractive dividend yield of 5% means that investors have been rewarded and will be hoping for further good news that will authenticate this rise.

“Updates on the important Asia operations will be worth noting, along with the progress on its strategic objectives and outlook for other regions.”

  • EU unemployment for June and inflation for July – Eurostat

Tuesday 1 August

  • UK construction PMIs

Wednesday 2 August

  • UK services PMIs
  • Standard Chartered Q2 results

The share price hit a 12-month high last week helped by recent trading updates that increased hopes among analysts that the restructuring is starting to show through.

Spooner says: “This is an emerging market focussed bank and investors will be keen to read about the current economic situation especially in Asia. Any comments regarding the restating of a dividend will also be of interest, along with costs, bad loans and outlook.”

Thursday 3 August 

  • Bank of England rates decision and inflation report

Last week’s first estimate for UK GDP in the second quarter was 0.3 per cent, only a slight improvement on growth of 0.2 per cent in Q1. Will the Bank of England downgrade its growth forecasts?

“It is not likely to vote for a hike in UK rates, but it will be interesting to see how many members do, and what the minutes say about the prospects of an increase in interest rates soon,” says Spooner.

Friday 4 August

  • Royal Bank of Scotland Q2 results

“Investors will be hoping that the group remains on track with its forecast to return to profit next year,” says Spooner. “The group is set to shift its business towards retail and commercial banking, with the CEO’s restructuring plans to last until 2020. Areas to concentrate on will be costs and any further comments regarding regulatory fines.”

  • US Employment Situation, July – Bureau of Labor Statistics

June saw the fastest rate of job creation in the US since February, with non-farm payrolls rising by 222,000. Average hourly wages also rose – up by 0.2 per cent month on month.