Friday preview: UK retail sales, BoJ policy announcement eyed

(Sharecast News) - There are no FTSE 350 corporate releases scheduled for Friday, but investors will eye the latest UK retail sales data and an interest rate announcement from the Bank of Japan. Outside the FTSE 350, a third-quarter trading update is due from specialist currency and asset manager Record.

On the macro calendar, UK retail sales for December are due at 0700 GMT.

Michael Hewson at MCH Market Insights said: "Could we see a December rebound for the UK consumer? Given the resilience of recent UK retailers pre-Christmas trading updates, there is certainly a case for a rebound in sentiment. We could certainly do with one given the dreadful retail sales numbers seen in October and November, which were solely down to concerns over what might come out of the latest budget at the end of the month.

"In October and November, we saw declines of 0.9% and 0.1% respectively as consumers kept their hands firmly in their pockets. 12 months ago, similar uncertainty over the government's plans for the UK economy gave rise to a similar hesitancy on the part of consumers where we saw retail sales decline in 4 of the last 5 months of 2024.

"Could this December be any different? Let's hope so for the sake of the hospitality and retail sector, and early indications do appear to point that way, with the only concern being as to whether any consumer rebound, we see, might be sustainable at a time when unemployment is starting to accelerate sharply."

Also on the macro front, flash UK and eurozone manufacturing PMIs for January will be released.

Market participants will also mull a policy decision from the Bank of Japan. Following a rate hike in December, the BoJ is widely expected to keep its policy rate unchanged at 0.75%.

Danske Bank said: "Overnight, the Bank of Japan concludes a two-day policy meeting. With the December rate hike in mind and an upcoming election next month, Bank of Japan will stay on hold, even if a weaker yen continues to feed the inflation problem."

Across the pond, quarterly results are due from oilfield services company Schlumberger.

Friday January 23

INTERIM DIVIDEND PAYMENT DATE

Baltic Classifieds Group, Big Yellow Group, Cranswick, Discoverie Group, Gore Street Energy Storage Fund , Latham (James), One Health Group

QUARTERLY PAYMENT DATE

Patria Private Equity Trust

QUARTERLY EX-DIVIDEND DATE

Thor Explorations Ltd (DI)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

IFO Business Climate (GER) (09:00)

IFO Current Assessment (GER) (09:00)

IFO Expectations (GER) (09:00)

U. of Michigan Confidence (Final) (US) (15:00)

SPECIAL EX-DIVIDEND DATE

Thor Explorations Ltd (DI)

AGMS

SSP Group

UK ECONOMIC ANNOUNCEMENTS

GFK Consumer Confidence (00:01)

Retail Sales (07:00)