Wednesday preview: US-China trade talks, UK property in focus

The spotlight on Wednesday is likely to be on any headlines out of the trade talks between Chinese and US negotiators which will be taking place in Washington D.C..

America's central bank will also be in the spotlight, with the release of the minutes of its last policy meeting, held on 31 July to 1 August, scheduled for 1900 BST.

In particular, markets will be focusing on any hints from rate-setters regarding their take on the ongoing trade tensions.

Nevertheless, this time around the minutes may be a bit over-shadowed by the Federal Reserve's annual economic symposium in Jackson Hole.

Data-wise, the main release of the session will be the preliminary results of IHS Markit's manufacturing and services sector Purchasing Managers' Index for August, at 0900 BST.

As one of the timeliest reports each month on conditions within the euro area economy, those PMIs frequently trigger a sizeable market reaction.

Housing and property will be in focus in the UK corporate space on Wednesday, with Grafton, Hansteen Holdings and Rightmove all set to update markets.

For the former, analysts at Numis were expecting the building materials supplier to reveal that it was managing to swim against the current in its sector, posting higher profits thanks to good management of its UK operations and growth abroad.

The broker had penciled-in an improvement in the company's profits before tax for the latest six-month stretch from last year's £75.5m to £82.0m.

"Grafton and the merchanting sector have seen lower share prices as a result of weaker trading statements and we believe that these results will illustrate that the group strategy is insulating Grafton from the wider UK malaise while other businesses continue to grow strongly," analyst Howard Seymour told clients.

There was also scope for positive surprises from property investor Hansteen Holdings, Numis said, cautioning clients not to interpret a recent lack of updates from the firm as indicative of a lack of activity.

Nevertheless, analyst Robert Duncan was antipating 14 basis points of yield compression over the latest half.

Wednesday August 22

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)

Existing Home Sales (US) (15:00)

MBA Mortgage Applications (US) (12:00)

INTERIMS

Avast, Costain Group, Empresaria Group, Foresight Solar Fund Limited, Grafton Group Units, Hansteen Holdings, Headlam Group

TRADING ANNOUNCEMENTS

Proactis Holdings, Venture Life Group

GMS

Foresight Solar Fund Limited, Rightmove

AGMS

Collagen Solutions, Downing One VCT , Latham (James), Paragon Entertainment Ltd (DI), Puma VCT 10

QUARTERLY PAYMENT DATE

Merchants Trust

FINAL DIVIDEND PAYMENT DATE

Vedanta Resources