Barratt Redrow has already cut its first-half dividend and scaled back land purchases as it adapts to an uncertain environment amid rising geopolitical tensions.
Investors will hope there is no more bad news when Britain’s biggest housebuilder updates on trading this week.
AJ Bell analysts Dan Coatsworth and Danni Hewson say that house builders have faced the perfect storm in recent years, with higher interest rates impacting affordability, to rising costs reducing profitability.
“While there are tentative signs of hope, we’ve seen plenty of false dawns before,” they say.
The Royal Institution of Chartered Surveyors this week reported a positive balance of property professionals expecting sales to increase in the next 12 months.
On Wednesday, the latest policy announcement is due from the Bank of Canada, which is widely expected to keep rates on hold at 2.25%.
ING said: “We think the bar for a material hawkish turn by the Bank of Canada is high, and we don’t expect surprises at next week’s meeting. Unless oil rallies back to April-May levels, the inflation outlook remains too benign to hike.”
DIARY
Monday 13 July
- Half-year results from ME Group
- Trading update from Grafton
Tuesday 14 July
- Full-year results from Watches of Switzerland
- Quarterly results from JPMorgan, Bank of America, Goldman Sachs and Citigroup
- Trading update from Robert Walters
- US inflation
Wednesday 15 July
- Trading update from Barratt Redrow
- Full-year results from Cohort
- Trading update from Hunting
- Quarterly results from ASML, Johnson & Johnson, Morgan Stanley, BlackRock and United Airlines
- US PPI
Thursday 16 July
- Full-year results from Frasers Group
- Half-year results from Ocado, Crest Nicholson
- Trading update from Dunelm, Diploma and Wise
- Quarterly results from UnitedHealth, Netflix and Seagate
- UK GDP
- US retail sales
Friday 17 July
- First quarter figures from Burberry
- GfK consumer confidence
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