The mid-point of the week looks to be relatively quiet in terms of company news, with final results only expected from firms including Londonmetric Property PLC (LON:LMP) alongside interims from Shaftesbury PLC (LON:SHB) and Paragon Banking Group PLC (LON:PAG).
As a result, traders are instead likely to focus on the latest meeting of the US Federal Reserve, though no major initiatives are expected. Chair Jerome Powell said last month that “the Fed has lending powers, not spending powers”.
“So in an environment where there is a collapse in demand with rising unemployment and state and local governments running out of cash, it requires the Federal government to step in,” said analyst James Knightley at ING, in a preview
He does not expect any major new action from the Fed from at this meeting, given the performance of financial markets, the fact credit continues to flow freely and with Fed officials making it clear they have no interest in negative interest rates.
Perhaps the most interesting thing will be the Fed’s first economic projections since the coronavirus pandemic began.
Analyst Marshall Gittler at BDSwiss said his guess is “that they will predict a pickup in growth starting from the second half of the year, but for the recovery to be tepid and gradual at best”.
Significant announcements expected on Wednesday:
Fed interest rate decision
Finals: Londonmetric Property PLC (LON:LMP), Castings PLC (LON:CGS), VP PLC (LON:VP.)
Interims: Shaftesbury PLC (LON:SHB), Paragon Banking Group PLC (LON:PAG)
Economic data: US inflation