Wednesday preview: Barratt Redrow update, Morgan Stanley results due

(Sharecast News) - Wednesday will bring trading updates from housebuilder Barratt Redrow and Hunting, as well as full-year results from Cohort. As far as Barratt is concerned, AJ Bell analysts Dan Coatsworth and Danni Hewson said UK housebuilders have faced the perfect storm in recent years, from higher interest rates impacting affordability to rising costs reducing profitability.

"This situation is weighing on the sector," they said. "Several housebuilders have this year issued gloomy updates, the latest being Vistry.

"Barratt 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 it updates on trading.

"While there are tentative signs of hope, we've seen plenty of false dawns before. The Royal Institution of Chartered Surveyors this week reported a positive balance of property professionals expecting sales to increase in the next 12 months."

In the US, quarterly results from ASML, Johnson & Johnson, Morgan Stanley and BlackRock will be out.

Also 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%.

TD Securities said the BoC faces a balancing act in July with a backdrop of lower oil prices and a negative growth shock alongside stronger forward-looking indicators, all while uncertainty remains historically elevated.

"We look for the Bank to stay on message with a focus on balancing inflation risks against the softer domestic backdrop as guidance keeps the threat of consecutive hikes," it said.