The FTSE 100 has rallied strongly over the past few weeks, climbing from a low of 10,370 earlier this month to around 10,820. That momentum will be in focus next week as investors turn their attention to key UK economic data and earnings reports from major companies.
UK to publish important macro data
The FTSE 100 will react to some important numbers from the UK. The Office of National Statistics (ONS) will publish the latest jobs numbers on Tuesday. After that, the agency will release the September consumer inflation data on Wednesday.
Economists expect the data to show that the headline and core CPI jumped in September as energy prices soared. Finally, the UK will release the official retail sales report, which are expected to show that volume rose in September.
These numbers will help the Bank of England (BoE) when delivering its interest rate decision later this month. Economists expect the bank to hike interest rates later this month.
Barclays stock in focus as it releases earnings
BARC stock has been under pressure in the past few months as concerns about the investment banking division rose. After starting the year well, there are signs that the trend is getting worse, with the volume of deals falling by over 40% sequentially in the third quarter.
The severity of this issue was seen this week when US banks like Morgan Stanley, Goldman Sachs, and Bank of America. Morgan Stanley’s investment banking revenue rose by just 2% to $2.16 billion, $110 million lower than expected.
Analysts expect that Barclays UK will have a profit before tax of 931 million pounds, with its UK corporate bank making 291 million pounds. Its private bank and wealth management division is expected to make 99 million pounds.
Unilever
Unilever stock has staged a strong comeback in the past few months. It has jumped from a low of 4,000p earlier this year to the current 4,885p. This rally will be in the spotlight as investors react to its upcoming earnings report.
These results will provide hints on how the company is doing. The last earnings report showed that its sales growth rose 4.8% in the second quarter, with its turnover soaring to over 25.6 billion euros. Most of this growth came from its home care business, followed by its beauty and wellbeing segment.
Analysts expect the upcoming report to show that its underlying sales growth rose 4.8% in the third quarter. Its volume is expected to rise 2.5%, while its price soared by 2.3%.
Persimmon
Persimmon stock has been highly volatile in the past few weeks. It surged on September 28 after the UK announced a new program to help consumers buy homes. It hit a high of 1,340p and then pulled back as the momentum faded.
The upcoming earnings report will likely show that its business deteriorated in the third quarter because of the elevated mortgage rates. Housebuilders are also facing the challenge of high cost of doing business as inflation rises.
The most recent results showed that its profit before tax rose by 3% to 170 million pounds in the first half of the year. This happened as the number of house completions rose by 7%, while the average asking price rose by just 3%.
Aberdeen Group
Aberdeen Group, formerly known as Abrdn, has stayed inside a narrow range in the past few months. It has remained between the support and resistance levels of 231p and 255p since July.
The company will react to the upcoming earnings on October 21. Its last earnings report showed that its net operating revenue rose 2% to 643 million pounds. Similarly, the profit before tax rose 2% to 276 million pounds, with its assets under management hitting 576 billion pounds.
These results will provide more hints on its business and whether its revenue and assets under management continued to grow.
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