Tuesday preview: Global financial stability, RBA rate decision in focus

Investors' focus on Tuesday will be on equity markets and whether or not the rout of the last few sessions abates.

In particular, they are likely to also be closely watching to see whether or not the heightened levels of equity volatility subside towards something closer to normality.

At one point during the previous session, the Chicago Board of Options Exchange VIX volatility index came close to rivalling some of the most extreme readings hit during the very onset of the Covid-19 pandemic.

Against that backdrop, overnight rate-setters at the Reserve Bank of Australia will announce their latest policy decision.

On home shores, at 0830 BST S&P Global will release its purchasing managers' index for the country's construction sector.

For Abrdn's interims, UBS analyst Michael Werner has pencilled in a 20% drop in the asset manager's adjusted operating profits to reach £102m (consensus: £118m).

Net revenues meanwhile were pegged to come in at £649m by the analyst.

The firm's fund flows, any potential changes to its progressive dividend strategy and any disclosures regarding the capitalisation of its defined benefit pension surplus would also be closely watched, he said.

For Werner, at 12.7 times the consensus's earnings estimates, the shares were pricing in a return to net inflows in early 2025.

He however did not expect that to happen until 2027.

Tuesday 06 August

INTERIMS

Abrdn , Genel Energy, InterContinental Hotels Group, International Workplace Group, Maxcyte (DI), Rotork, SIG, Spirent Communications, Travis Perkins, XP Power Ltd. (DI)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (US) (13:30)

Factory Orders (GER) (07:00)

Retail Sales (EU) (10:00)

AGMS

Eqtec (CDI), Syncona Limited NPV

UK ECONOMIC ANNOUNCEMENTS

BRC Sales Monitor (00:01)

PMI Construction (09:30)

FINAL DIVIDEND PAYMENT DATE

Cake Box Holdings, Johnson Matthey, Tatton Asset Management