All eyes will be on the Federal Reserve meeting this week which kicks off on Tuesday.
With the decision on whether or not to raise interest rates not until Wednesday, however, the corporate front will provide most of the intrigue until then.
Imagination Technologies will draw some eyes after a first quarter update that underwhelmed.
The firm said royalty revenue had been weaker than expected, and blamed a soft semiconductor market and a faster ramp down of a specific legacy chip for its lower forecasts.
This contrasted strong unit growth at Apple (which accounts for 54% of royalty units, where iPhone/iPad volumes were up 21% year-on-year, showing everything outside Apple is particularly weak.
Due to the weaker royalties, IMG guided that first half revenue was likely to be “below forecast” but investors will look for any positive signs in the early trading of the second half.
Broker Numis said Imagination’s results have “become an increasingly frustrating affair” with poor performance combined with upbeat rhetoric and indications of improvement,
This is then subsequently followed by “further poor financial performance and a lack of visible strategic progress.”
The broker added: “We believe there are very few reasons to believe these results will break this sustained trend.”
Meanwhile, the imaginatively named carpet seller Carpetright (LON:CPR) is also reporting on Tuesday.
Peel Hunt said the firm has made “great progress on store closures” with potential for at least another dozen before the year-end.
“This would be sufficient to strip out well over £10mln of costs annually, with further upside from sales transfers,” the broker said.
The group’s late October half year trading update saw it reporting a 4% increase in like-for-like sales, with full year profit guidance left unchanged.
According to Hargreaves Lansdown, an update regarding “strategic initiatives” including a trial of new retail store concepts is expected.
Significant announcements expected:
Interim: Imagination Technologies (LON:IMG), Carpetright (LON:CPR)
Trading statement: Petrofac (LON:PFC)
Economic: UK – Consumer price index, retail price index, producer price index; Eurozone – ZEW survey; US Consumer price index;