Wednesday preview: Fed in focus as central bank unveils policy measures

28th Apr 2015 13:33

Investors will be keen to see if the Federal Reserve on Wednesday provides hints on the timing of its first interest rate hike when the central bank releases its policy decision, while the UK corporate calendar sees Barclays, British American Tobacco, Home Retail, Next and Standard Life among those reporting.The Fed is expected to keep interest rates at 0.25% following its two-day meeting amid weak data.Many analysts see September as the most likely earliest date for an interest rate raise after April was ruled out."The consistently soft nature of the USA's recent data could see the return of a more 'patient' Fed, despite the door being opened for a 2015 rate rise," said Connor Campbell at Spreadex.Michael Hewson, chief market analyst at CMC Markets, also noted that US economic data continues to show some "worrying levels of weakness, in the wake of the recent cold winter weather"."A number of Fed officials in recent days have tempered expectations of an imminent move on the interest rate front in light of this weaker tone, particularly given the weakness seen on the consumer side."In March, the Fed removed the term "patient" in its pledge on rates but said it still remains cautious.Wednesday's agenda also includes the release of US economic growth data. Analysts forecast gross domestic product (GDP) rose an annualised 1% in the first quarter, slowing from 2.2% the previous three months.German inflation may have picked up, with analysts predicting a report to show consumer prices rose 0.4% year-on-year in April compared to a 0.3% gain a month earlier. The European Central Bank has been trying to move inflation back towards its target of just below 2% through its quantitative easing programme.On the company front, Barclays releases its first quarter results. Numis predicts first quarter statutory pre-tax profit of £1.1bn, down from £1.8bn the previous year, due to an expected £500m provision for payment protection insurance. Adjusted pre-tax profit is forecast at £1.60bn, compared to £1.69bn a year ago. Income is estimated to rise 3% to £2.16bn.Barclays' interims come after shareholders at the bank's annual general meeting last Thursday urged new chairman John McFarlane to carry out a ruthless overhaul. Investors complained about the lender's financial results, the income of top bankers and small dividend.Home Retail Group reports its annual results following a weak fourth quarter trading update, driven by a slump in its Argos brand on less demand for electrical products and limited recovery in homewares, jewellery and furniture. The City is expecting the company to reported a 13% rise in full-year profits to £130m, despite challenging trading, due to tight cost control and improved margins.On Next, independent analyst Nick Bubb said, with tough comparative figures, Next are budgeting for overall first-half sales to be only 0%-to-3% up, "but although February and March were tough months, given the cold weather, the market may be underestimating how sensitive the business is to fine weather and a good April could nudge the whole quarter a bit ahead of worst fears."Wednesday 29 AprilINTERIMSRedefine InternationalINTERNATIONAL ECONOMIC ANNOUNCEMENTSBalance of Payments (GER) (07:00)Business Climate Indicator (EU) (10:00)Crude Oil Inventories (US) (15:30)ECB Report (EU) (09:00)Economic Sentiment Indicator (EU) (10:00)FOMC Interest Rate (US) (19:00)GDP (Advance) (US) (13:30)GFK Consumer Confidence (GER) (07:00)M3 Money Supply (EU) (09:00)MBA Mortgage Applications (US) (12:00)Pending Homes Sales (US) (15:00)Q4MHP SA GDR (Reg S)FINALSAquatic Foods Group , Development Securities, Home Retail Group, MHP SA GDR (Reg S), Mi-Pay Group, Summit Germany Limited, Vimetco NV GDR (Reg S)ANNUAL REPORTSocietatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)IMSSAer Lingus Group, Barclays, British American Tobacco, Next, Standard Life, TSB Banking GroupEGMSGlobal Ports Investments GDR (REG S), MTI Wireless Edge Ltd.AGMSAberdeen UK Tracker Trust, Admiral Group, Aggreko, Alliance Trust, Aviva, BlackRock World Mining Trust, British American Tobacco, Countrywide, Devro, EMIS Group, EP Global Opportunities Trust, Global Invacom Group Limited (DI), Global Ports Investments GDR (REG S), Hellermanntyton Group, Kennedy Wilson Europe Real Estate , Lancashire Holdings Limited, London Stock Exchange Group, Maven Income & Growth 4 VCT, MTI Wireless Edge Ltd., Nichols, Polar Capital Global Financials Trust, SEGRO, Sterling Energy, Weir GroupTRADING ANNOUNCEMENTSGreggs, Stagecoach Group, Standard LifeUK ECONOMIC ANNOUNCEMENTSCBI Distributive Trades Surveys (11:00)Nationwide House Price Index (07:00)Q1Norsk Hydro ASA, OJSC Megafon GDR (Reg S), Ooredoo Q.S.C. GDR (Reg S)