Wednesday preview: Emerging markets, CPI, Babcock in the spotlight

The market spotlight on Wednesday is likely to be on emerging markets, assuming no major developments materialise at this point on the Brexit front in Salzburg.

Interest rate decisions are expected from central banks in Thailand, overnight, and Brazil, later in the day, with the latter considered by many to be a bellwether for the EM space more generally.

Meanwhile, in Austria, European Union leaders are set to meet for the first of two days of informal talks with Brexit very high on their agenda.

Back in the UK, ONS is due to release a reading on consumer prices for August, with the consensus anticipating a drop in the year-on-year rate of headline harmonised CPI from July's level of 2.3% to 2.1% in August and that core CPI will dip from 1.9% to 1.8%.

Economists at Barclays Research on the other hand are forecasting a much larger drop in core CPI, to 1.6%, on the back of less positive clothing prices than a year ago and as the impact of weakness in the pound drops out of the year-on-year calculations.

In the background, Bank of England chief economist, Andrew Haldane, is scheduled to deliver a speech at 0900 BST in Estonia to mark the centenary of that country's central bank.

Traders will also be waiting for a speech from European Central Bank chief, Mario Draghi, in Berlin, at noon.

Later in the session, readings on US housing starts in August and the country's current account deficit during the second quarter are scheduled for 1330 BST.

Among the companies set to update markets on Tuesday is Babcock, with analyst James Beard at Numis looking for updated guidance from the engineer in particular.

In its first quarter trading update in July, the company guided towards lower revenues, in part because of delays to certain UK work streams in its Land and Marine businesses, which sent its shares plummeting by 10%.

Beard also wants further guidance on the firm's expectations for cash-flow/net debt as it ramps-up in order to meet the demands of the FOMEDEC contract to provide the French Air Force with an advanced jet-fighter trainer, alongside Dassault.

Wednesday September 19

INTERIMS

Accesso Technology Group, Alliance Pharma, Cello Health, Central Asia Metals, Elektron Technology, Greencoat Renewables, Kingfisher, Mission Marketing Group, Norish Units, Novacyt S.A. (CDI), Quixant, Ra International Group, Randall & Quilter Investment Holdings (DI), Yu Group

INTERIM DIVIDEND PAYMENT DATE

Octopus VCT 3, Octopus VCT 4

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Building Permits (US) (13:30)

Crude Oil Inventories (US) (15:30)

Current Account (EU) (09:00)

Current Account (US) (13:30)

Housing Starts (US) (13:30)

MBA Mortgage Applications (US) (12:00)

FINALS

InnovaDerma

EGMS

PJSC Megafon GDR (Reg S)

AGMS

Eckoh, F&C Managed Portfolio Trust Growth Shares, F&C Managed Portfolio Trust Income Shares, Games Workshop Group, NCC Group, Nuformix, Securities Trust of Scotland, United Carpets Group, Warehouse Reit

TRADING ANNOUNCEMENTS

Babcock International Group, Stagecoach Group

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (09:30)

Producer Price Index (09:30)

Retail Price Index (09:30)

FINAL DIVIDEND PAYMENT DATE

Cohort