City watchers will test transatlantic waters

US Federal Reserve chairwoman Janet Yellen in focus. Picture: Getty

With just a handful of London-listed companies reporting, the market will take its direction from across the Atlantic, where second-quarter results from a number of major firms will give clues as to how far the economic recovery is being reflected in the profits of multinationals.

Meanwhile, central bankers on both sides of the Atlantic will be hoping not to move markets as they face questions from politicians.

Fed chair Janet Yellen will be delivering her bi-annual monetary policy report to Congress, while Bank of England governor Mark Carney will be testifying before the Treasury select committee and European banking boss Mario Draghi faces lawmakers in Strasbourg.

WEEK AHEAD

Today

• European Central Bank – Draghi goes before the European Parliament’s economic and monetary affairs committee to explain his latest package of stimulus measures to support the still struggling eurozone economies.

Tomorrow

• Inflation – Economists say there have been no obvious catalysts to dramatically change the consumer prices index (CPI) from its modest reading of 1.5 per cent in May.

• British Chambers of Commerce – Publishes the results of its international trade survey highlighting the barriers facing UK exporters.

Wednesday

• FirstGroup – The transport company’s annual meeting in Aberdeen lets investors air issues over executive pay.

Thursday

• SSE – The impact of SSE’s self-imposed energy freeze will be disclosed in the utility’s first-quarter trading update. It froze prices in March until January 2016.

• Unemployment – Official figures are likely to show further improvement in the jobless rate. Details of average pay will be scrutinised for signs that an inflationary cycle is starting.

Friday

• Trends in Lending – The Bank of England’s quarterly report will likely show firms are still struggling to borrow cash.