Spread betting week ahead – All eyes on the Bank of England after Brexit vote

Alcoa kicks off earnings season in the US on Monday, but the focus this week will be on the Bank of England as it convenes for its first policy meeting since the Brexit vote on June 23rd.

Governor Mark Carney has acted quickly and decisively to soothe markets following the vote, but the warnings for the economy have been stark. At a press conference held a week after the referendum he said there was a strong chance of further easing being announced this month. Releasing the Bank’s financial stability report last week, Mr Carney warned that the outlook for the economy has deteriorated and the UK’s current account deficit is a “potential source of fragility”. Weak PMI readings are also weighing on the outlook and helped to send the pound to a fresh 31-year low last week, although the FTSE 100 has risen.

The Monetary Policy Committee meets on Thursday, July 14th with the announcement of the official Bank Rate and Monetary Policy Summary released at midday.

Away from the UK and Brexit, Alcoa gets earnings season off to a start on Wall Street on Monday ahead of Q2 figures from several of the major US banks. At the end of the week there are some important GDP and industrial production numbers from China, followed by inflation data from the US.

Economic Calendar

(All times are BST)

Tuesday, July 12th

Tentative – UK inflation report hearings

Wednesday, July 13th

15:00 – Bank of Canada monetary policy announcement

15:30 – US crude oil inventories

Thursday, July 14th

All day – France bank holiday

12:00 – Bank of England monetary policy announcement

Friday, July 15th

03:00 – China GDP and industrial production figures

10:00 – Eurozone final inflation reading

13:30 – US inflation and retail sales figures

15:00 – Preliminary University of Michigan consumer sentiment report

Earnings Calendar

 

Monday, July 11th

Alcoa (AA) - Q2/2016, EPS estimate 0.095

Tuesday, July 12th

Begbies Traynor Group (BEG) – Y/2016, EPS estimate 0.032

Marks & Spencer (MKS)  – trading update and interim management statement

Wednesday, July 13th

Delta Air Lines (DAL) – Q2/2016, EPS estimate 1.797

Barratt Developments (BDEV) – trading update

Burberry Group (BRBY) – trading update

Thursday, July 14th

JPMorgan Chase & Co (JPM) – Q2/2016, EPS estimate 1.445

BlackRock Inc (BLK) – Q2/2016, EPS estimate 4.831

Burberry Group (BRBY) - AGM

Friday, July 15th

Citigroup (C) – Q2/2016, EPS estimate 1.151

US Bancorp (USB) – Q2/2016, EPS estimate 0.808

Wells Fargo & Co (WFC) – Q2/2016, EPS estimate 1.010

Source: Bloomberg