The main focus on Friday will be the latest US CPI data, with inflation across the Atlantic having been falling rapidly recently, possibly undermining the need for further Federal Reserve interest rate hikes.
In June, the headline US CPI rate fell to 1.6%, while core inflation – excluding food and energy – was 1.7%.
The core CPI rate has fallen short of consensus expectations for the past four months but this streak may come to an end in July, according to HSBC, which is forecasting a 0.2% monthly rise, although the year-on-year rate of core CPI inflation is forecast to hold steady at 1.7%.
In a preview, the bank said one major reason why US core inflation has softened this year has been a slowdown in the pace of increase in rents, but it is forecasting a moderate rise in rents in July.
HSBC also expects the headline US CPI rate to increase by 0.2% in July, pushing the year-on-year rate up to 1.8%.
Old Mutual numbers
There will be little on the corporate front to excite on Friday, with interims from investment group Old Mutual PLC (LON:OML) the only blue chip news scheduled.
The FTSE 100-listed firm has been active with both disposals and acquisitions over the past year as it moves toward a managed separation, splitting the company in four, which it expects to be materially complete by the end of 2018.
The plans will involve creating two separate entities, one listed in London and the other in Johannesburg - one will primarily consist of its Wealth operations, with the other will primarily comprise its emerging markets business.
Earlier this month Old Mutual’s 54%-owned South African banking subsidiary, Nedbank reported a drop in earnings in the first half of 2017, but hiked its dividend and strengthened its capital position.
Significant events expected on Friday August 11:
Interims: Old Mutual PLC (LON:OML), TT Electronics PLC (LON:TTG), Touchstone Exploration PLC (LON:TXP)
Trading update: Volution Group PLC (LON:FAN)
Economic data: US consumer price index