Wednesday preview: Federal Reserve policy decision, BoE meeting minutes ahead

The Federal Reserve releases its economic projections and announces its latest policy decision on Wednesday, amid speculation surrounding the timing of the central bank’s first interest rate hike.

Analysts expect the Federal Open Market Committee will maintain interest rates at 0.25%, holding off on any increase until mid- 2015. The Fed has said it will keep rates low for a considerable time.

“[Chair Janet] Yellen may still be wringing her hands in concern over the long-term unemployed and low average wages but she seems as determined as her colleagues to start normalising monetary policy,” said Alastair Winter, economist at Daniel Stewarts & Co.

“This means higher interest rates, albeit with very gentle increments, in 2015 followed by the running down of the Fed’s balance sheet.”

The market will also be focusing on US inflation data which is expected to slow in November to 1.5% from 1.7% the previous month amid falling oil prices.

In the UK, the Bank of England releases minutes of its policy announcement on 4 December. The minutes may elaborate on the central bank’s decision to maintain interest rates at 0.5% and asset purchases at £375bn.

British labour market data is also due out, including figures on employment change, jobless claims, weekly earnings and the unemployment rate.

In the euro-area, revised Eurozone inflation figures will be released but analysts expect no change to an initial estimate of a 0.3% rise in November. The European Central Bank, which is targeting inflation of just below 2%, is under mounting pressure to introduce full-blown quantitative easing to address price instability.

Wednesday 17 December

INTERIMS
Dixons Carphone

INTERIM DIVIDEND PAYMENT DATE
E2V Technologies, NextEnergy Solar Fund Limited Red

QUARTERLY PAYMENT DATE
Total SA

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (13:30)
Consumer Price Index (EU) (10:00)
Consumer Price Index (US) (13:30)
Consumer Price Index (US) (00:00)
Crude Oil Inventories (US) (15:30)
Current Account (US) (13:30)
FOMC Interest Rate (US) (19:00)
Harmonised Index of Consumer Prices (EU) (10:00)
MBA Mortgage Applications (US) (12:00)

GMS
21st Century Technology, Benchmark Holdings , MXC Capital

ANNUAL REPORT
Marston's

EGMS
PXP Vietnam Fund Ltd., Rose Group Limited

AGMS
Baronsmead VCT, Baronsmead VCT 2, British Empire Securities & General Trust, Greatland Gold, Impact Holdings, O2 Czech Republic A.S. GDR (144A/Reg S), Sareum Holdings, Standard Life Equity Income Trust, Volution Group (WI)

TRADING ANNOUNCEMENTS
Saga

UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE
Gleeson (M J) Group, Plexus Holdings