Wednesday preview: Market microscope on MPC minutes and Fed update
Wednesday sees the posting of the minutes from the latest meeting of the Bank of England's Monterary Policy Committee and the latest statement from the US Federal Reserve also due for release.
UK consumer price data released on Tuesday, obviously not available when the meeting was held, showed inflation remained on a downward trend, which reduces the pressure on the MPC to raise rates.
Economists do not expect the minutes, which are being unveiled at 09:30, to reveal that any other members of the committee joined last month’s pair of would be rate-hikers.
In fact, suggested Capital Economics' Maeve Johnson, "the case for leaving rates on hold has strengthened since there is little evidence that the recovery’s strength is causing price pressures to build".
She pointed to indicators, such as the high proportion of inactive people willing to work at current wages, which suggest that there is still plenty of slack in the labour market to pacify Governor Mark Carney and co.
In the event that there are any surprise additional votes in favour of a rate hike, it may suggest that the committee is prioritising other things over inflation.
Over the Atlantic, all eyes will be on whether the Fed amends its pledge that there is “considerable time” after its conclusion of asset purchases before it will look to raise interest rates.
In which event, economists suggest this would be a six-month "starters' gun" warning before a rate rise.
But even the prospect of a slight change in tone within the statement could cause a "tsunami", says Jasper Lawler of CMC Markets, holding back investors from much action so far this week.
"The build-up to this month’s Fed meeting is such that there could be a big reaction either way the Fed moves.
"If the Fed keeps a more dovish tone then the US dollar is extremely overbought and subject to a sharp snapback.
"If market expectations of a more hawkish tone play out then stocks are near all-time highs and have plenty of room to fall."
Wednesday 17 September
FINALS
Brooks Macdonald Group, IndigoVision Group, Kier Group, Smiths Group, Transense Technologies
INTERIMS
Avanta Serviced Office Group, Cello Group, JD Sports Fashion, Mi-Pay Group, Real Estate Investors, ServicePower Technologies, XLMedia
TRADING ANNOUNCEMENTS
Daily Mail and General Trust A (Non.V)
IMSS
Imagination Technologies Group, Smith (DS)
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
Claimant Count Rate (09:30)
Unemployment Rate (09:30)
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Payments (US) (13:30)
Consumer Price Index (EU) (10:00)
Consumer Price Index (US) (13:30)
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)
New Car Registrations (EU) (10:00)
EGMS
Fyffes
AGMS
Colefax Group, Datatec Ltd. (DI), ECO Animal Health Group, Gail (India) Ltd GDR (Reg S), Games Workshop Group, Intercede Group, Marwyn Value Investors Limited, Private Equity Investor, Sefton Resources Inc., Smith (DS)
FINAL EX-DIVIDEND DATE
AdEPT Telecom, Best of the Best, Consort Medical, Conviviality Retail , Derwent London, Henderson Smaller Companies Inv Trust, Renishaw, Standard Life UK Smaller Companies Trust, Stewart & Wight, Swan (John) & Sons, UniVision Engineering Ltd.
SPECIAL EX-DIVIDEND PAYMENT DATE
Mobeus Income & Growth 2 Vct
INTERIM DIVIDEND PAYMENT DATE
Hiscox Ltd (CDI), Mobeus Income & Growth Vct
INTERIM EX-DIVIDEND DATE
Antofagasta, Ashley (Laura) Holding, BBA Aviation, Belvoir Lettings, Chime Communications, Computacenter, Costain Group, Foresight VCT Infrastructure Shares, Highcroft Investment, International Public Partnerships Ltd., InterQuest Group, Interserve, Irish Continental Group Units, Maintel Holdings, Martinco , Melrose Industries, Molins, Neptune-Calculus Income & Growth VCT, Octopus AIM VCT 2, Pennant International Group, Petrofac Ltd., Primary Health Properties, RPS Group, Total Produce, Tribal Group
QUARTERLY EX-DIVIDEND DATE
TwentyFour Select Monthly Income Fund Limited