A quarterly update from Rolls-Royce Holdings PLC (LSE:RR.) is expected to reveal the airline engine manufacturer has continued its gradual signs of recovery from its lull during the pandemic.
Underlying revenue has been seen to improve throughout the year, particularly for the power systems and civil aerospace markets (see the full Rolls preview).
BT Group PLC (LSE:BT.A) shares have been climbing higher ahead of this week's half-year numbers.
It seems the presence of French billionaire Patrick Drahi on the shareholder register - and maybe the spinning off of BT Sport - is enough to counterbalance the past few months alone seeing a torrent of apparently bad news: stiffening competition in the UK telecoms market, concern over rising interest rates with BT’s huge debt pile, an ongoing staff pay dispute, alarms for its pension fund and a fine for its accountant over audit failings (read the preview of BT's interims here).
First-half profits from J Sainsbury PLC (LSE:SBRY) on Thursday are expected to be at the bottom end of the supermarket chain's guidance range from modest sales growth and tighter margins.
Recent evidence via ONS retail sales figures indicated shoppers are tightening their belts more than forecast, which doesn’t bode well for own brand homeware and Argos ranges, said one analyst (in the full SBRY preview).
The Bank of England will make its first policy decision since being forced to intervene in bond markets after the calamitous Liz Truss-Kwasi Kwarteng fiscal fiasco.
Unlike the Fed, there’s a big debate over how much the Bank’s monetary policy committee will hike interest rates – half, three-quarters or even a whole percentage point – amid still-rampant inflation and the tight labour market but the shudders being felt in the housing market and wider economy (see the BoE and Fed preview here).
While also mulling the previous day's US Fed decision markets will also look ahead to US mid-term elections the following week - being held on 8 November.
Economists at ING said that with polls shifting in the direction of a Republican-controlled Congress, this will greatly limit what President Joe Biden can achieve in the second half of his presidential term.
"This means less government influence on the economy and will put more pressure on the Fed to cut rates in the second half of 2023 to support the economy, as nothing will come from the fiscal side."
Significant announcements on Thursday
Trading updates: Derwent London PLC (AIM:DLN), Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF), Howden Joinery Group (LSE:HWDN) PLC, Lancashire Holdings PLC, Rolls-Royce Holdings PLC, Smith & Nephew PLC (LSE:SN), TI Fluid Systems PLC (LSE:TIFS)
Interims: Barrick Developments PLC, BT Group PLC, Helios Towers PLC (LSE:HTWS), Lancashire Holdings PLC, Nuformix PLC (LSE:NFX), RS Group PLC (LSE:RS1), J Sainsbury PLC, RS Group PLC,Trainline PLC (LSE:TRN)
Finals: Gattaca PLC (AIM:GATC), UP Global Sourcing Holdings PLC (LSE:UPGS)
AGMs: Darktrace PLC (LSE:DARK)
Ex-dividends to reduce FTSE 100 by: 6.18 points (Shell PLC, Whitbread)
Economic announcements: PMI Composite (UK), BoE Interest Rate Decision (UK), BoE Interest Rate Minutes (UK), Continuing Claims (US), Initial Jobless Claims (US), PMI Composite (US), PMI Services (US), Factory Orders (US), ISM Prices Paid (US), ISM Services (US)
US earnings Thursday: Ball Corp, Barrick Gold, Moderna, Amgen, Block Inc (NYSE:SQ), Coinbase Global, Illumina, PayPal Holdings, Starbucks Corp (NASDAQ:SBUX), Twilio, Virgin Galactic