The Week Ahead: UK and US inflation numbers, Tesco results

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The week before Easter will have the release of both UK and US inflation figures as well as Tesco results. Meanwhile, on Thursday, the Royal Institution of Chartered Surveyors will show whether the housing market is slowing further.

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

Monday 10 April

  • UK Consumer Price Indices including inflation target

Tuesday 11 April

  • UK Producer Price Inflation

The Share Centre investment research analyst Graham Spooner says: “Last month, UK inflation rose to 2.3 per cent.  Although many economists expect UK inflation to rise throughout this year, bear in mind that month on month inflation in March 2016 was relatively high.

“Month on month inflation in March 2017 will have needed to have been even greater for the annual rate to rise. This may happen, but bigger rises in inflation are more likely in April.”

  • Vedanta Resources (Q4 production and revenue release)

Spooner says: “Increased production rates across the firm’s portfolio and improving commodity prices should follow through to greater revenues, for which the market consensus is for a 5 per cent rise to $11.3bn. Investors will also be expecting good news on the cost front and no more significant asset impairments which should result in the company returning to a small net profit (to be reported at a later date) compared to the huge losses in 2015 and 2016.”

Wednesday 12 April

  • Tesco (Q4 results)

Spooner says: “Investors will be hoping for more signs that the group is rediscovering its competitiveness; protecting and strengthening its balance sheet, regaining trust and improving the transparency in its business and brand.

“Fierce price competition and promotions are likely to remain a squeeze on margins for some time and the revised strategy is going to take time to implement. Investors backing the new management and the signs of improvement in recent results will have to be patient.”

Thursday 13 April

  • Residential Market Survey, March – Royal Institution of Chartered Surveyors

Spooner says: “Last month, the RICS headline index stood at plus 24, the same level as the month before. But the Nationwide has since reported on a month on month fall in house prices, the Halifax index threw up a similar finding the month before.  Will this closely watched index from RICS support this narrative of a slowing housing market?”

Friday 14 April

  • US Consumer Price Index