A Brief Look At The Week Ahead

It's a big week for economic news with the release of inflation data in the UK and the US. The markets have recently been buoyed by speculation that lower oil prices will dampen inflation and keep a lid on interest rates around the globe. However, wider political concerns are never far from the surface and can cause irrational spikes and dips at a moment's notice. Drinks giant Diageo holds its AGM on Tuesday. The owner of Smirnoff Vodka and Guinness will also provide a trading update and is likely to discuss growth in Asia after saying last week that China was likely to surpass Japan as the world's second-largest spirits market by value. The US ranks as number one. Also on Tuesday, Mouchel Parkman, the company managing the 100m improvement project for the M42 motorway, releases its full-year results. Investors will be interested in a trial on the M42, which kicked off last month and allows motorists to use the hard shoulder during peak traffic periods. On Wednesday, sporting retailer JJB Sports publishes final results, but analysts at UBS Investment Research think increased costs will take its first-half profit 3m lower than the 18m it posted in the previous corresponding period. Royal Dutch Shell has until Friday to respond to proposals from the Russian government for fixing perceived environmental and safety problems at its $20bn Sakhalin 2 project. This uncertainty, added to the recent signs of easing oil prices, could create some fragility in the stock during the week. Amongst others in the limelight this week are :- Bellway and Cheerful Scout on Tuesday with Manganese Bronze on Wednesday and Sportingbet and Colt Telecom on Thursday. Yet another quiet reporting week in the UK, but some of the big-hitters in the US will be publishing earnings and that will have a knock-on effect in London. Good hunting! Greystone (Greystone is Alan English, City Editor at MoneyAM.)

Good morning traders!

In Asia today, the Hang Seng was recently up 1.8 points at 17,990.66, while the Nikkei stood at 16,724.38, up 187.84 points.

New York's main oil contract, light sweet crude for November delivery, was up 43 cents at $59.00 a barrel from $58.57 in late US trade Friday.

Early broker notes:

SPORTINGBET CUT TO 'REDUCE' VS 'NEUTRAL' AT UBS
AUTONOMY STARTED 'HOLD' AT DEUTSCHE BANK, PRICE TARGET 510P
ITV UPGRADED TO 'OVERWEIGHT' VS 'EQUAL-WEIGHT' AT MORGAN STANLEY
WH SMITH DOWNGRADED TO 'EQUAL-WEIGHT' FROM 'OVERWEIGHT' BY LEHMAN, TARGET 332P
KINGFISHER CUT TO 'UNDERWEIGHT' VS 'EQUAL-WEIGHT' AT MORGAN STANLEY


SEA CONTAINERS FILES FOR CHAPTER 11

Happy trading!

G.

Morning all.

End-of-day Market Roundup