This week’s economic data is not likely to rock the boat. The biggest news will be US unemployment data. Markets may wobble further if it is below expectations, but there is little good news in the price of shares at the moment.
The week starts slowly, with interim and final results from a number of smaller companies, including a slew of technology companies. It has been a buoyant year for the technology sector, but it is geared into corporate health so markets will be looking for signs that it is waning.
On Tuesday, results from toy-maker Character and Topps Tiles will be closely watched for insight into the health of the consumer. Both operate in different parts of the market, but are vulnerable to sentiment. Recent retail results have been better than expected with Dixons and Kesa both reporting slower declines.
On Wednesday, Hogg Robinson’s results are likely to garner attention given the recent weakness in Thomas Cook. Its last set of results showed revenues boosted by an improvement in business travel and investors will be hoping this goes some way to mitigate the weakness of personal travel. Results from West End property group Shaftesbury will demonstrate whether prime commercial property is continuing in its recent strength. Full year figures from Sage are likely to be scrutinised for further developments on the group’s recent problems with Australian software group MYOB. Mouchel and Britvic also report full year results today.
The rest of the week is relatively quiet. Greene King has interim results on Thursday. The group had made progress with its push into food in its last set of results, but was cautious about the economic environment. Kingfisher, owners of the B&Q and Castorama brands, also updates the market on Thursday. Investors will be looking for progress on its push into emerging markets.
Monday
There is little to excite the markets in early trading with just some manufacturing and employment data from Japan. Figures for new home sales in the US may distract markets in the afternoon, however, demonstrating whether any confidence is returning to the US housing market and, by extension, its economy.
Tuesday
It may not be the grand drama of the Eurozone, but statistics on mortgage approvals and net lending to individuals in the UK will give some clue as to the health of the economy going into 2012. Equally, the Conference Board consumer confidence index in the US will show whether recent economic momentum in the US has been maintained.
Wednesday
All eyes are likely to be on the non-farm payrolls in the US. Recent data has been better than expected with the last set of unemployment data showing US jobless at a seven-month low. Investors will be hoping this was not just a one-off. There are also a number of key statistics from the Eurozone, including French consumer spending, German unemployment and overall Eurozone CPI. The ECB still has scope to cut rates if inflation statistics permit.
Thursday
Again, markets are likely to be focused on job statistics in the US, but manufacturing data from the US, UK and Eurozone will also have an impact on market mood. In the UK, recent research data from the CBI suggests that manufacturing orders are down and the sector is weakening. In the Eurozone, markets will be watching to see to what extent the debt crisis has spilled over into the real economy.
Friday
German retail sales are the first statistics on today’s agenda, but are unlikely to distract markets, particularly in the face of more employment data in the US. In practice it is unlikely to be anything new on the previous two day’s data, but will hold markets’ attention.
