Week ahead: Bank of England (and Fed), Shell in focus

Central banks will be front and centre on investors' minds over the coming week, with the Bank of England possibly set to cut interest rates and the US Federal Reserve having the power to stop the current sharp gains in the stockmarket in its tracks, according to analysts.

Analysts at both Barclays Research and Bank of America expect that the Monetary Policy Committee will opt to take out insurance against sluggish growth at its next policy meeting by cutting Bank Rate by 25 basis points to 0.50%.

"We continue to expect a cut by the BoE next week to insure the economy remains on the recovery path," Fabrice Montagne and Abbas Khan at Barclays told clients.

And in the case of BofA, a continued lack of momentum in UK Purchasing Managers' Indices in February could see a second rate cut which they had penciled in for August also brought forward.

As for the Fed, BofA said the Federal Open Market Committee meeting, on Wednesday, held the key to an extension in the current irrational exuberance in stocks in the first quarter.

Key corporate updates are due out over the coming week on both sides of the Pond, with Apple due to update investors on Tuesday, followed by Boeing, Microsoft and Tesla on the following day.

On home turf, Shell is due to publish its full-year numbers on Thursday.

CMC Markets UK's David Madden sees scope for a repeat of the oil giant's negative earnings surprise in the third quarter, which showed that management had underestimated just how weak crude oil prices were going to be in the backhalf of 2019.

"This is unlikely to have changed in the weeks since then, despite recent spikes in prices due to tension in the middle East," he said.

"The biggest problem for the large oil companies is their reluctance to take more than baby steps when it comes to renewables at a time when climate change is becoming more mainstream.

"The world is pulling away from big oil as an investment case, and the big oil majors will need to commit more to renewables to keep the climate activists at bay."

Lastly, come Friday, the UK will formally exit the European Union.

Monday January 27

INTERIMS

ITM Power

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Economic Sentiment Indicator (EU) (10:00)

IFO Business Climate (GER) (09:00)

IFO Current Assessment (GER) (09:00)

IFO Expectations (GER) (09:00)

New Homes Sales (US) (15:00)

Personal Consumption Expenditures (US) (13:30)

Services Confidence (EU) (10:00)

FINALS

Global Invacom Group Limited (DI), SThree

TRADING ANNOUNCEMENTS

Petra Diamonds Ltd.(DI)

FINAL DIVIDEND PAYMENT DATE

Marston's

Tuesday January 28

INTERIMS

NWF Group, PZ Cussons

QUARTERLY EX-DIVIDEND DATE

Marsh & Mclennan Cos Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Confidence (US) (15:00)

Durable Goods Orders (US) (13:30)

FINALS

Crest Nicholson Holdings, McCarthy & Stone

AGMS

Euromoney Institutional Investor, Greencore Group, Lowland Investment Co, Schroder UK Mid Cap Fund, Wey Education

TRADING ANNOUNCEMENTS

Barr (A.G.), DP Eurasia N.V. (DI) , UDG Healthcare Public Limited Company

UK ECONOMIC ANNOUNCEMENTS

CBI Distributive Trades Surveys (11:00)

FINAL DIVIDEND PAYMENT DATE

Majedie Investments

Wednesday January 29

INTERIMS

Hargreaves Services

INTERIM DIVIDEND PAYMENT DATE

Amigo Holdings

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)

GFK Consumer Confidence (GER) (07:00)

M3 Money Supply (EU) (09:00)

MBA Mortgage Applications (US) (12:00)

Pending Homes Sales (US) (15:00)

SPECIAL DIVIDEND PAYMENT DATE

Prime People

AGMS

Proactis Holdings, Red Rock Resources, Renew Holdings, Tharisa (DI), Virgin Money UK

UK ECONOMIC ANNOUNCEMENTS

Nationwide House Price Index (07:00)

Thursday January 30

INTERIMS

Best of the Best, Haynes Publishing Group, Rank Group, Renishaw

INTERIM EX-DIVIDEND DATE

Cohort, CPL Resources, IG Group Holdings, NB Private Equity Partners Ltd., Totally

QUARTERLY PAYMENT DATE

Marble Point Loan Financing Limited NPV

QUARTERLY EX-DIVIDEND DATE

APQ Global Limited, Custodian Reit , Merchants Trust

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Business Climate Indicator (EU) (10:00)

Consumer Confidence (EU) (10:00)

Consumer Price Index (GER) (07:00)

Continuing Claims (US) (13:30)

GDP (Preliminary) (US) (13:30)

Import Price Index (GER) (07:00)

Industrial Confidence (EU) (10:00)

Initial Jobless Claims (US) (13:30)

Unemployment Rate (EU) (10:00)

Unemployment Rate (GER) (08:55)

Q4

Royal Dutch Shell 'A', Royal Dutch Shell 'B', Samsung Electronics Co Ltd (ATT) GDR (Reg S), Unilever

FINALS

Samsung Electronics Co Ltd (ATT) GDR (Reg S), Unilever

SPECIAL EX-DIVIDEND DATE

Hollywood Bowl Group

AGMS

Avon Rubber, Hollywood Bowl Group, Inspirit Energy Holdings, Schroder Asia Pacific Fund, Unicorn AIM VCT

TRADING ANNOUNCEMENTS

Evraz, Fuller Smith & Turner

UK ECONOMIC ANNOUNCEMENTS

BoE Interest Rate Decision (12:00)

Consumer Credit (09:30)

M4 Money Supply (09:30)

Mortgage Approvals (09:30)

FINAL DIVIDEND PAYMENT DATE

Up Global Sourcing Holdings , WH Smith

FINAL EX-DIVIDEND DATE

Chrysalis VCT, Hollywood Bowl Group, Renew Holdings, Stock Spirits Group , Sureserve Group, Tracsis, Victrex plc

Friday January 31

INTERIMS

Hargreaves Lansdown

INTERIM DIVIDEND PAYMENT DATE

Aberdeen New Dawn Investment Trust, BMO Global Smaller Companies, Burberry Group, Experian, International Biotech Trust, Iomart Group

QUARTERLY PAYMENT DATE

BMO Commercial Property Trust Limited, BMO Private Equity Trust, Middlefield Canadian Income PCC, Value and Income Trust

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Chicago PMI (US) (14:45)

GDP (Preliminary) (EU) (10:00)

Personal Consumption Expenditures (US) (13:30)

Personal Income (US) (13:30)

Personal Spending (US) (13:30)

U. of Michigan Confidence (US) (15:00)

FINALS

Premier Veterinary Group

AGMS

Britvic, C4X Discovery Holdings , Henderson European Focus Trust, Infrastrata, Regency Mines, Shaftesbury

TRADING ANNOUNCEMENTS

SSE

UK ECONOMIC ANNOUNCEMENTS

BRC Shop Price Index (00:01)

GFK Consumer Confidence (00:01)

FINAL DIVIDEND PAYMENT DATE

AJ Bell, Baillie Gifford European Growth Trust , BP 8% Cum 1st Prf, BP 9% 2nd Prf, Character Group, DotDigital Group, Focusrite, Lowland Investment Co, Topps Tiles