We’re heading into Wednesday on the back of a weaker Tuesday. Global stock markets, including the FTSE 350, slipped back after the US consumer price index rose by 8.3% in the year to August.
Stock market nerves
The FTSE 100 fell 87 points Tuesday (1.2%) to 7,386, while the FTSE 350 shed 52 points to close the day at 4,093.
Both are still slightly above last week’s close. But heavy US losses could send the FTSE indexes down further on Wednesday. The S&P 500 ended the day down 4.3%, with the Nasdaq falling a whopping 5.2%.
Investors might want to keep an eye on Ocado, Tuesday’s biggest FTSE faller, to help gauge sentiment.
Full-year results
We have full-year results from home furnishings seller Dunelm coming Wednesday. The shares have lost 50% over the past 12 months. But that’s after a pandemic boom which boosted online retailing. The Dunelm price fell 5.2% Tuesday, in advance of the figures.
Redrow will report its full-year, in a sector that’s out of favour in 2022. Other housebuilders have revealed a robust first half, but the economic squeeze hadn’t really set in. Maybe Redrow can give us some hints on how H2 is looking.
Oil share news
Wednesday brings first-half figures from Tullow Oil. The mid-cap oil explorer has previously suffered under its debt burden. But today’s higher oil prices are helping, and the share price has gained 25% over the past 12 months.
The oil price had been weakening since August. But for now, Brent Crude is holding steady at around $93 per barrel. BP and Shell both ticked up slightly Tuesday, despite the overall market dip. Investors might be optimistic on Oil and Gas shares Wednesday.
Dividend updates
Melrose Industries Industries shareholders expecting their stock to go ex-dividend Wednesday will now have to wait another day after the company issued a correction. Anyone who wants the interim cash has one more day to buy.
Meanwhile, interim dividend payments should be on their way to Reckitt Benckiser and Fresnillo shareholders.
Economic fears
The UK consumer price index (or, in other words, inflation) climbed as high as 10.1% in the 12 months to July 2022. And there’s been speculation that it could peak at around 14% before starting to cool.
The latest instalment in the saga comes Wednesday, with the consumer price index and the retail price index both set to be released. These updates will tell us what happened in August — and US inflation figures released Tuesday may well presage disappointing news.