Sunday 25 September 2022 12:32 p.m
Investors will be analyzing a range of results from top retailers for signs of a slowdown in consumer spending in response to an economic slump.
London’s leading FTSE 100 index underperformed last week, falling 3.62 percent to close at 7,018.60 points, mainly due to a sharp sell-off on Friday after Chancellor Kwasi Kwarteng’s huge “mini-budget”.
The domestically focused mid-cap FTSE 250 index, which is more focused on the health of the UK economy, also had a terrible week, falling almost 5% to end below the 18,000 point mark.
A mix of retailers update markets from different parts of the sector this week.
High-street fashion chain Next is expected to release a tame set of half-year results on Thursday due to an unusually warm start to autumn leading consumers to stick with their existing wardrobes.
“Selling momentum is likely to have picked up over the past week or so, but our expectations of a slow start mean material changes to the forecast look unlikely,” analysts at brokerage Peel Hunt said.
The online fashion store and FTSE 250-listed Boohoo updates markets on Wednesday.
Boohoo stock price this year
The company’s share price is down around 66 per cent this year on concerns over workers’ welfare and the launch of a new £1.99 returns policy, prompting consumers to look elsewhere.
The low-cost retailer Aldi also published financial figures this week.
Analysts expect the German supermarket has benefited as Britons switched to cheaper alternatives in response to the cost of living crisis.
On the economic front, new Friday GDP figures for the three months to June could show that the UK economy is doing much worse than initially thought.
Same-day credit card spending figures could show households turning to risky debt as rising prices weigh on their finances.