Wednesday preview: UK inflation, Burberry update due

(Sharecast News) - Wednesday sees the release of the latest UK inflation data, along with trading updates from JD Sports, Wetherspoons and Burberry, among others. Experian, gold miner Hochschild, Mr Kipling owner Premier Foods, Elementis and Currys are also scheduled to release trading updates.

As far as JD Sports' Q4 statement is concerned, UBS said it expects the focus to centre on North America and Europe, where investors are looking for signs of consumer weakness; promotional activity and its potential impact on gross margins; and any commentary on early trading expectations for fiscal 2027.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said JD Sports went into the peak Christmas trading period on the back foot.

"The fashion group lowered its full-year underlying pre-tax profit guidance from £878 million to £853 million back in late November, due to weak macroeconomic and consumer data points," he said.

"Trading of late has been particularly soft in the UK, made more difficult by recent hikes in employer taxes and minimum wages. Markets are expecting to hear that demand on home soil has remained subdued when the group releases its trading update next week.

"After its acquisition of Hibbett across the pond, the US is now the group's largest market by sales. Investors are hoping to hear that its increased scale is starting to bring better efficiency, but it could be some time before it has a meaningful impact on the bottom line. In the meantime, European consumers are coming under some pressure. As a result, it wouldn't be a surprise to see full-year profit guidance get lowered again at next week's update."

Across the pond, quarterly results are due from Johnson & Johnson, Travelers and Halliburton.

On the macro front, the UK consumer price index for December will be released at 0700 GMT.

Kathleen Broks, research director at XTB, said inflation is expected to have risen a notch last month to 3.3% from 3.2%.

"The BOE had expected a small increase at the end of last year, and it is expected to remain temporary, thus, if CPI is in line with expectations, we may not see much market reaction, with fresh US tariffs the biggest threat to the pound this week, in our view," she said.

Wednesday January 21

INTERIM DIVIDEND PAYMENT DATE

Northern 2 VCT, Northern 3 VCT, Northern Venture Trust, Speedy Hire

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)

Existing Home Sales (US) (15:00)

MBA Mortgage Applications (US) (12:00)

Q3

Burberry Group

Q4

PensionBee Group

TRADING ANNOUNCEMENTS

Currys , Galliford Try, ICG, JD Sports Fashion, Wetherspoon (J.D.)

UK ECONOMIC ANNOUNCEMENTS

Consumer Price Index (07:00)

Producer Price Index (07:00)

Retail Price Index (07:00)