Inflation takes centre stage again with the UK's consumer price index having hit another record high in June of 9.4%.
Although core prices slipped back to 5.8%, further rises in producer and output prices suggested that more pain was coming down the line.
After the Bank of England raised interest rates by half a percent earlier this month, another strong CPI reading could raise the prospect of a similar hike in September, though the central bank is well aware that its hikes have no effect on the rise in food and energy prices.
Even with food and energy stripped out, however, core prices are still well above the Bank’s headline target of 2% and are expected to move above 6% for July, with the headline number rising to a new high of 9.8% and the retail price index, which is used to set student loans and train prices, reaching 12.9% from 11.8% a month earlier.
In the US, minutes from the US rate-setters' last meeting and retail sales numbers are likely to move the dial for stock markets.
On the company front, residential builder Persimmon PLC (LSE:PSN) will be looking to rebuild its reputation with investors after a gloomy trading update in July, which sent its shares a-tumbling.
The FTSE 100-listed group guided for an 8% drop in turnover to £1.7bn and slower project completions in the first half, citing planning delays and staff and materials shortages.
Analysts at UBS said new information that investors will be keen to see will be “margin, current trading and the outlook”.
Wednesday will also offer a perspective from the infrastructure side of the construction industry from Balfour Beatty plc (LSE:BBY), which last updated in May, saying trading this year had been in line with expectations.
At the end of March, its order book was £15.6bn, down from £16.1bn at the end of 2021, with a strong cash performance.
Investor focus is likely to remain on UK construction and if it is still on track for 2-3% margins despite London residential, said broker Peel Hunt.
“Overall, we expect no change to the guidance for the earnings-based businesses (ahead of FY22) and continued investments/disposals.”
Last month, Plus500 Ltd (LSE:PLUS) nudged up its revenue and earnings guidance for the current year for the second time in three months as the CFD broker was attracting and retaining “higher value” customers “despite lower volumes across the financial industry”.
First-half revenues were expected to be US$511mln, with EBITDA 63% higher at US$305mln.
“There remains a lot going on strategically with Plus – for example, building the investment platform or investing in the US futures and options business,” said Peel Hunt.
Significant announcements on Wednesday
Interims: Balfour Beatty PLC, Essentra PLC (LSE:ESNT), Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF), Kenmare Resources plc (LSE:KMR), Persimmon PLC, Plus500 Ltd
Trading updates: Gen Diamonds Ltd
AGMs: Calnex Solutions PLC (AIM:CLX), NextEnergy Solar Fund Ltd (LSE:NESF)
Economic announcements: MBA Mortgage Applications (US), Retail Sales (US), Retail Sales Less Autos (US), Business Inventories (US), Crude Oil Inventories (US), Consumer Price Index (UK), Producer Price Index (UK)
US earnings: Cisco Systems (NASDAQ:CSCO)