We ask one of our brokers to highlight two pieces of market data or news which they consider to be worth keeping an eye on this month.
The broker is deliberately given no specific remit or distinction between data, stocks, results or events simply an identification of news which he believes will have a significant impact on the market as a whole or on a specific stock.
7th & 8th August – Barclays & Royal Bank of Scotland’s Interim Results.
Following the news and volatility in the banking sector over recent months, investors will be eagerly awaiting these interim reports.
With the deteriorating housing market and tighter credit conditions, there has been much speculation as to how bad these results will be.
However, over the past week (Weds 16th July to 23rd July) several better than expected updates from various US banks prompted a short sharp rally in global equity markets. It will be interesting to see if the same will occur following the UK banks Interims.
7th August – Bank of England Interest Rate Decision.
The emphasis on interest rates looks set to remain strong for the foreseeable future.
The minutes from the July meeting showed a surprising three way split in the Bank of England’s rate setting monetary policy committee (MPC) with 7 members voting for rates to stay on hold, 1 for a cut and 1 for a rise. This marked the first vote for a rate rise since June last year.
However, escalating inflation and slowing UK growth has fuelled uncertainty in the City over the Banks next move. With this in mind, any indication of the Banks stance on rates going forward will be eagerly awaited by market participants.