(Sharecast News) – All eyes on Wednesday would be on the UK consumer price report for the month of June.
At 0700 BST, the Office for National Statistics was expected to report a fall in the annual rate of increase in consumer prices from 8.7% for May to 8.2% in June.
Core CPI on the other hand was seen steady at 7.1%.
Michael Hewson, chief market analyst at CMC Markets UK, attributed May’s surprise rise in core consumer prices to a confluence of events, including ticket prices for concerts, Coronation and the energy price cap.
The latter, he said, meant that consumers had not enjoyed a sharp fall in energy costs immediately, something that might become apparent in the July CPI data.
On the flip-side, food price gains were slowing – even if at a glacial pace – and slower producer price increases should start to feed through into the headline CPI figures in the second half of 2023.
Commenting on the outlook for the Bank of England’s monetary policy, Hewson said that Wednesday’s figures were unlikely to change the calculus around an expected 25 basis point interest rate hike in two weeks’ time.
Also due out was the UK House Price Index for May.
Nonetheless, a “strong” number might add to pressure for a larger 50bp move, which he believed was the most likely outcome.
In the company arena on the other hand, it was US investment banking heavyweight Goldman Sachs that could be expected to draw the most attention.
Consensus was that Goldman would post second quarter revenues of $10.75bn, alongside a slide in profitability to $4.72 per share.
But according to Hewson it was the lender’s guidance for the following quarter that would be in sharp focus.
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