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Updates due from Rio Tinto and DCC on Friday

On the macro data front there will also be a UK consumer confidence report from Gfk

Rio Tinto PLC -

Two FTSE 100-listed groups are scheduled to report on trading on Friday, while traders flagged the key macro event as being an important EU summit at which leaders will start to hammer out the crucial budget to lead the bloc out of the coronavirus (COVID-19) crisis.

Rio Tinto PLC's (LON:RIO) update comes a day after fellow diversified miner Anglo American's production report revealed its mines had increased from around 60% of total production capacity in April to reach 90% by the end of June, amid varying degrees of lockdown in different jurisdictions.

In recent weeks, analysts have been upping their forecasts for the major miners for second-quarter realised prices and updated commodity price assumptions.

Looking forward to this new reporting season, JPMorgan Cazenove upped its share price targets for Rio and fellow iron ore giant BHP due to higher iron ore and base metal prices.

The US bank's analysts said the significant outperformance in the European basic resources sector since its March 23 nadir will "be at odds" with a first-half earnings collapse for many industrial metal producers, including Rio and BHP, where the analysts forecast interim earnings per share will be 19% and 17% lower respectively year-on-year. 

But they said this "is consistent with our expectation that China’s economic headstart versus the rest of the world, plus lower supply centre risks for European listed miners, would allow share prices to rally alongside a recovery in commodity prices".

Ireland-based distribution group DCC PLC (LON:DCC) will provide an update alongside its annual shareholder meeting, with its last news coming in May when it proposed an increased final dividend and said it continued to trade “robustly” in the face of the coronavirus pandemic. 

DCC said then that it had seen “significant demand increases in some areas, with significant declines in others” since the COVID-19 lockdowns had come into force in the countries where it operates. 

Trading in April and May was said to have remained “significantly profitable, although behind the prior year” and with demand continuing to change in its markets, leading management to curtail all non-essential spending but still completing two bolt-on acquisitions.

Significant announcements expected on Friday July 17:

Trading updates: Rio Tinto PLC (LON:RIO), DCC PLC (LON:DCC)

FinalsCaffyns PLC (LON:CFYN)

Economic data: UK consumer confidence

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