Share Talk Expected Market Updates For The Week Ahead, 19th – 23rd December 2022

There is plenty of opportunity to see the Santa rally in the weeks leading up to Christmas. However, only a few updates have been provided by FTSE 350 companies such as Carnival, Bunzl, and Petrofac.

The London Stock Exchange will close Friday at noon to make way for seasonal celebrations.

A few earnings reports from US companies, such as Nike, FedEx, General Mills, and Micron, should also be available.

For macroeconomic issues, the Bank of Japan (and People’s Bank of China) both issue interest rate announcements Tuesday mornings. The Czech, Hungary and Indonesia central banks will also meet this week. However, Indonesia is the only country that could raise rates.

On Thursday, the US and UK gross domestic product numbers will be due. Friday will include US personal consumption data as well as durable goods orders.

There is nothing in the City diary other than AGMs, except if you are interested in Slovakian unemployment data or German IFO numbers.

Important announcements to be made Monday

AGMs: Abingdon Health Limited. Beeks Financial Cloud Group PLC. (AIM:BKS), China Nonferrous Gold Limited. (AIM:CNG), Conygar Investment Company PLC. (AIM:CIC), Renalytix PLC. (AIM:RENX), Technology Minerals

Economic announcements NAHB housing index (US).

Being one of the few companies on the calendar usually brings extra attention, but not necessarily in weeks between Christmas and New Year.

Petrofac Limited (LSE: PFC), which is still working to repair its reputation following a Serious Fraud Officer investigation, has not received much attention in the past few years. It is back in flux.

REDX reports prelims from ‘s signing of a clinical trial collaboration agreement and supply agreement with Merck(MSD). This will allow the company to evaluate its treatment for cancer in combination with Keytruda, the blockbuster US drug giant.

Redx Pharma recently announced that phase II clinical trials for the second drug in its pipeline have begun following the recruitment of its first patient.

Nike Inc. reports its second quarter numbers in the US. Its shares have fallen to two-year lows in October, owing to fears that its China business might see an even greater decline than the 19% revenue drop at the end of last year.

Nike correctly predicted that revenues would be flat to slightly higher and increased costs for the first quarter compared to last year. Investors were less happy with the 44% increase in inventory and the larger increase in the US and the 16% fall in China sales, even though sales in the US increased.

Nike stated that it expected to increase revenue by low double figures on the back of increased consumer demand. Earnings per share are forecast to be US$0.65.

Important announcements to be made on Tuesday

Trading Update: Petrofac Limited

Finals RedX Pharma PLC

US earnings General Mills BlackBerry FedEx Nike

AGMs Conroy Gold & Natural Resources PLC and eEnergy Group PLC. Karelian Dia Resources PLC (AIM:KDR).

Economic announcements Building Permits (US), Housing Starts(US)

Midweek relative riches with an FTSE 100 firm, in the form Bunzl PLC(LSE: BNZL). Although the company issued a bullish update a few weeks ago, investor confidence has been dwindling in recent days. Not helped by reports that the UK is closing in on a ban on single-use plastics.

This has brought to light how much of the company’s business relies on single-use disposable products in packaging, hygiene and personal protection equipment. However, this week’s update is unlikely to show the full impact.

Also reporting is Carnival PLC(LSE: CCL), which was a blue chip company until the pandemic, when its cruise ships became virus hotspots (or ‘floating Petri dishes’) and were turned away from ports all over the world.

Anglo-US is still suffering from hangover effects. Analysts highlight concern over rising wages and advertising costs, as well as fuel volatility.

Macro news will focus on US consumer confidence, which rose to a six-month high in September but has begun to decline despite evidence of inflation falling.

According to Michael Hewson, CMC Markets market analyst, “The main reason why the slowdown is more likely to be down to the fact the Federal Reserve interest rate increases are now starting to impact credit costs which in turn is hammering US housing market which has seen sales fall each month this year except January.”

“We are also starting to see services-level inflation becoming stickier, and this is also affecting consumption patterns.” The rising prices will continue to affect consumer confidence, which is expected to fall below 100 to 99.9 in the next four months.

Important announcements to be made on Wednesday

Trading updates – Bunzl PLC & Carnival PLC & Corporation

US earnings by Micron Technology

AGMs : 7digital Group PLC, BATM Advance Communications Ltd (LSE :BVC), dotDigital Group PLC and Northamber PLC

Economic announcements: MBA Mortgage Applications (US), Current account (US), Consumer Confidence(US), Existing Home Sales/US), Crude Oil Inventories/US), Public Sector Net Borrowing/UK

There are no London-listed companies on the agenda for those who are still paying attention. This means that there will be more attention to the final confirmation of the UK’s third-quarter gross domestic product.

They should also mention that the UK’s economy contracted by 0.2% during the third quarter. Private consumption was the biggest drag.

Inflation was squeezing real wages and rising interest rates, which led to a 0.2% contraction that was slightly less than originally expected.

Important announcements to be made on Thursday

US earnings Paychex (NASDAQ:PAYX).

AGMs: Beximco Pharmaceuticals (AIM:BXP) Ltd, Gulf Investment Fund, Solgold PLC

Economic announcements Gross Domestic Product (UK), Current account (UK), Continuing Claims(US), Gross Domestic Products (US), Initial Jobless Claims(US), Personal Consumption, New Homes Sales (US),


The US data will be a focus for hard-hearted workers or those who haven’t given up on the holidays.

The Federal Reserve raised rates by half a point in the week that just passed. This marks a slowdown in rate increases from 0.75 percentage points. Friday’s core PCE numbers may be a benchmark for future rate increases as we move into 2023, according to Michael Hewson, CMC Markets’ director of CMC Markets.

The Fed’s preferred inflation measure, Core PCE, is often as important as the main CPI figures.

Recent CPI and PPI data have demonstrated that inflation is still falling, he says.

October’s PCE core inflation rate fell to 5% in October, while the PCE deflator dropped from 6.3% to 6%.

Hewson says, “In light of last week’s Fed determination this week’s numbers could well begin to shape a narrative about whether we receive another 50bps at the Fed’s next meeting at the beginning of next year or whether we get a further step down to 25bps.”

Friday 23 December

AGMs: Parkmead Group (AIM:PMG) PLC, Plexus Holdings PLC (AIM:POS), Wildcat Petroleum (LSE:WCAT) PLC

Economic announcements Durable Goods Orders (US), Personal Consumption Expenditures (US), Personal Income US), Personal Spending US), Personal Sentiment US), New Homes Sales (US)

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