Several big names are expected to publish results on Thursday but, away from corporate news, the main focus will be on the latest European Central Bank Council meeting outcome.
Deutsche Bank is not expecting any policy announcements by the ECB although a quantitative easing exit step is expected in the next few months, with concern about the market overshooting suggesting the exit signal could be weak in September.
In a preview, the German bank’s analysts said: “We believe the ECB will leave the current rhetorical framework – ‘confidence, patience, persistence and prudence’– largely intact in September while adding a mild verbal warning that the EUR exchange rate is ‘important’ to growth and inflation.”
They added: “Rather than signal exit in advance, we think the ECB strategy will be to wrap the exit decision in dovishness when it is announced in October.”
New Bovis boss to deliver
On the corporate front, Bovis Homes Group PLC (LON:BVS) is expected to announce its strategy to overhaul the business under new chief executive Greg Fitzgerald alongside its interims on Thursday.
Fitzgerald, the former chairman of Galliford Try plc (LON:GFRD), has replaced chief executive David Ritchie who left earlier this year following a surprise profit warning.
Ahead of the official figures, Bovis outlined its first half performance in a trading update in July, reporting a decline in home completions and sales in line with its reduced expectations.
“While the rest of the housebuilding sector has been enjoying some incredibly benign market conditions, Bovis has somehow managed to bungle it,” said Hargreaves Lansdown.
“It has struggled to contain cost inflation, been unable to address a shortage of skilled labour and had to compensate customers for delivering sub-standard properties at the end of it all.”
EnQuest results overshadowed
Second quarter results from FTSE 250-listed oil group EnQuest PLC (LON:ENQ) are still likely to be overshadowed by last week’s production update, which highlighted problems at its Kraken field in the North Sea and cut production targets.
As a result of that, questions have again been raised about the group’s balance sheet and investors will be hoping for more clarification on the situation especially with regard to production targets for 2018.
Elsewhere, ex-dividend factors will knock 6.5 points off the FTSE 100 index on Thursday, with Admiral Group PLC (LON:ADM), Antofagasta PLC (LON:ANTO), BHP Billiton plc (LON:BLT), CRH PLC (LON:CRH), ConvaTec Group PLC (LON:CTEC), Glencore PLC (LON:GLEN), Land Securities PLC (LON:LAND), RSA Insurance PLC (LON:RSA), Shire Plc (LON:SHP), Standard Life Aberdeen PLC (LON:SLA), all trading without entitlement to their latest dividend payment.
Significant events expected on Thursday September 7:
Finals: Ashmore group PLC (LON:ASHM), CPL Resources PLC (LON:CPS), Frontier Developments PLC (LON:FDEV), Go-Ahead Group PLC (LON:GOG), McBride plc (LON:MCB), Redde Plc (LON:REDD)
Interims: Biffa PLC (LON:BIFF), Bovis Homes PLC (LON:BVS), Brady Plc (LON:BRY), CentralNic Group PLC (LON:CNIC), EnQuest PLC (LON:ENQ), Filtra Group Holdings PLC (LON:F LTA), Gama Aviation PLC (LON:GMAA), Hunters Property PLC (LON:HUNT), International Public Partnerships Limited (LON:INPP), Molins PLC (LON:MLIN), ProPhotonix PLC (LON:PPIX) Sanne Group PLC (LON:SNN)
FTSE 100 ex-dividends: Admiral Group PLC (LON:ADM), Antofagasta PLC (LON:ANTO), BHP Billiton plc (LON:BLT), CRH PLC (LON:CRH), ConvaTec Group PLC (LON:CTEC), Glencore PLC (LON:GLEN), Land Securities PLC (LON:LAND), RSA Insurance PLC (LON:RSA), Shire Plc (LON:SHP), Standard Life Aberdeen PLC (LON:SLA)
Economic data: ECB interest rate decision; Halifax UK house price index; US weekly jobless claims