Traders will also be watching Bank of England Governor Andrew Bailey’s conversation in a webinar hosted by the British Chambers of Commerce. The Bank last week said it is looking at the practicalities of negative interest rates, so any hints this is progressing could be a cue to sell.
CMC Markets analyst Michael Hewson observes: “There is increasing unease amongst an ever-widening cohort of people about the wisdom of going down a path that has seen zero evidence of being in any way useful, when it comes to supporting the economy.”
In corporate trading, two giants which have endured differing fortunes are set to update the market. B&Q owner Kingfisher initially suffered in the lockdown, voluntarily shutting all of its stores to install social distancing measures. Then on reopening it saw huge demand as bored Britons focused on fixing up their homes and gardens while stuck at home.
The shares hit their lowest level since 2009 but have rallied back somewhat since and first-half results should give an insight into recent trading today.
Meanwhile travel specialist Tui will also update, amid a crisis in the holidays industry. Any late summer holidays rush has been tempered by the long lockdown and threat of further restrictions. There has been talk of a rights issue at the Anglo-Germna company and German reports last week suggested the raise could be as much as £900 million to shore up the balance sheet of Europe’s largest tour operator.
