Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
UK inflation in the spotlight
GBP/USD could be the ‘one to watch’ in Tuesday’s session as data is expected to show an uptick in consumer prices, following an unexpected slowdown in June in the wake of a slump in global oil prices weighing on the cost of petrol and diesel.
Economists are forecasting that the consumer price index (CPI) rose at an annual rate of 2.7% in July, up from 2.6% in June.
Inflation has remained well above the Bank of England’s 2% target, fueling concerns from a few monetary policy committee (MPC) members, who believe the bank should begin tapering its ultra-accommodative monetary policy measures.
At the Bank of England’s most recent policy meeting in August, the MPC was split six-two over the decision to leave rates unchanged at 0.25%.
Retail sales
Following a slew of retail earnings from Macy’s, Kohl’s and Dillard last week, investors look ahead to retail sales data for July due Tuesday, expected to show an increase for the first time in three-months.
Economists forecast the Commerce Department report onretail sales to show a gain of 0.4% in July.
Retail sales data comes ahead of the minutes from Federal Open Market Committee policy meeting in July, which could offer further insight into the prospect of additional monetary tightening later this year as well as the central bank’s plan to reduce its $4.5tn balance sheet.
Home Depot to bring home a winning quarterly report?
Home Depot will report second-quarter results after the market closes on Wednesday amid strong expectations the retailer’s achieved a solid second-quarter of sales growth, following an uptick in the housing market.
The retailer has posted better comparable-store sales – a key measure analysts use to gauge the performance of retailers – in each of the last three years.
A slowdown in customer traffic growth, however, could weigh on top-line performance. Customer traffic growth slowed to below 2% during the first quarter from 4% in 2015.
Home Depot (NYSE:HD) is expected to earn $2.21 per share on $27.76 billion in revenue.