Tuesday preview: Preliminary fourth quarter GDP numbers in focus

Trading on Tuesday will likely be restrained ahead of Wednesday’s US Federal Reserve monetary policy meeting.

On 23 January economists at Barclays Research wrote that: “The committee will likely drop the reference to its prior use of “considerable time” in its policy rate guidance while retaining the language that it expects to be able to remain patient before removing policy accommodation.”

In the UK all eyes will be on the preliminary reading for economic activity in the fourth quarter courtesy of the Office for National Statistics (ONS). Analysts’ mean estimate is for gross domestic product (GDP) to have expanded at a quarter-on-quarter pace of 0.6% (2.8% year-on-year).

Over the previous three months GDP expanded at a 0.7% clip. The recovery is expected to have continued thanks mainly to the contribution of other sectors.

Meanwhile, the flow of data in the Eurozone will slow to just a trickle. The latest figures on the number of French jobseekers in December are the only ones due out.

However, in the aftermath of the Greek elections a meeting of the European Union's finance ministers may attract a fair bit of attention.

Foxtons hit a wall as home sales slow

Like home owners, investors in brash London-focused estate agent Foxtons have been scratching their head about whether to buy or sell.

With Bank of England's bean counters not predicted to raise interest rates until the middle of 2016, mortgages are sure to remain at attractive levels for some time yet, keeping the country's housing market bubbling away nicely.

But just as the firm prepares to unveil a trading update tomorrow, rival Countrywide last week warned that the housing slowdown in London had continued in December and Janaury and was likely to last until the General Election in May.

Foxtons, whose staff are infamous in the capital for driving around in brightly branded Mini Coopers, is therefore expected to announce a large fall in profits for the last few months of the year.

Analysts at Numis forecast a 32% decline in fourth-quarter earnings as depressed numbers of house sales are only slightly balanced by improved lettings business.

Looking past the election, the housing market is expected to bounce back after prices tail and political uncertainty is removed. The shares are changing hands near their worst levels since they floated back in September 2013.

Tuesday 27 January

INTERIMS
Mattioli Woods, PZ Cussons

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Confidence (US) (15:00)
Durable Goods Orders (US) (13:30)
New Homes Sales (US) (15:00)

Q4
Nord Gold NV GDR (Reg S)

FINALS
Benchmark Holdings , Crest Nicholson Holdings, Nord Gold NV GDR (Reg S), PJSC Magnit GDR (REG S)

IMSS
Greencore Group

AGMS
Arria NLG, Britvic, Greencore Group, Marston's, Servoca

TRADING ANNOUNCEMENTS
Foxtons Group , Gem Diamonds Ltd. (DI)

UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
GDP (Preliminary) (09:30)
Index of Services (09:30)