Wednesday preview: US Federal Reserve, Lloyds in focus

The market spotlight on Wednesday will be firmly on the US Federal Reserve, whose policymakers are widely expected to deliver a 25 basis point cut in the target range for official short-term interest rates as 'insurance' against the risk of a protracted downturn given the multiple headwinds from overseas.

Above all financial market participants were also keen to see to what extent Fed chairman Jerome Powell would vindicate, or not, expectations for several more interest rate cuts, with current market pricing in Fed funds futures pointing to at least two more reductions by the end of 2019.

Nonetheless, global trade won't be far from traders minds as US and Chinese negotiators meet for a second day in Shanghai and they will likely be busily scanning the headlines throughout the day for any updates.

Across the Channel meanwhile, recent soft data on German consumer prices and French second quarter gross domestic product growth meant that there were downside risks for releases due out on euro area CPI for July and second quarter Eurozone GDP.

Back in the UK, Lloyd's will publish its business barometre for the month of July, alongside the results of consultancy GfK's consumer confidence survey for the same month.

A slew of companies is set to update shareholders on Wednesday, including financial heavyweight Lloyds.

According to UBS's Jason Napier, the lender will post total second quarter income of £4.522bn, alongside £1.979bn of operating costs and £168.0m of remediation charges for pre-provision profits of £2.149bn.

After subtracting £252.0m-worth of impairments, underlying profits before tax are pegged at £1.897bn, with statutory profits seen at £1.497bn in part due to £300.0m in PPI charges.

Wednesday July 31

INTERIMS

4Imprint Group, BAE Systems, Countrywide, Dignity, Direct Line Insurance Group, Ibstock , Indivior, International Personal Finance, Intu Properties, Just Eat , Lloyds Banking Group, Man Group, Rentokil Initial, Restore, Serco Group, Smith & Nephew, Smurfit Kappa Group, St James's Place, StatPro Group, Taylor Wimpey

INTERIM DIVIDEND PAYMENT DATE

CC Japan Income & Growth Trust, European Investment Trust

QUARTERLY PAYMENT DATE

BMO Private Equity Trust, Ediston Property Investment Company, Middlefield Canadian Income PCC, Schroder Income Growth Fund, TwentyFour Select Monthly Income Fund Limited

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Chicago PMI (US) (14:45)

Crude Oil Inventories (US) (15:30)

Gross Domestic Product (EU) (10:00)

MBA Mortgage Applications (US) (12:00)

Retail Sales (GER) (07:00)

Unemployment Rate (EU) (10:00)

Unemployment Rate (GER) (08:55)

Q2

Indivior, Samsung Electronics Co Ltd (ATT) GDR (Reg S), Smurfit Kappa Group

FINALS

Angle, DWF Group , Hargreaves Services

SPECIAL DIVIDEND PAYMENT DATE

Helios Underwriting, Record, TMT Investments

AGMS

Cropper (James), Gabelli Value Plus Trust , Griffin Mining Ltd., Halfords Group, Hibernia Reit , Integumen, Mind Gym, Polar Capital Holdings, St James House , System1 Group

TRADING ANNOUNCEMENTS

3i Group, Mitchells & Butlers, Next

UK ECONOMIC ANNOUNCEMENTS

GFK Consumer Confidence (00:01)

FINAL DIVIDEND PAYMENT DATE

Amigo Holdings, BMO Global Smaller Companies, Edinburgh Inv Trust, Helios Underwriting, Record, Stobart Group Ltd., Tate & Lyle, Xpediator