Source: Sharecast
As far as Upper Crust owner SSP is concerned, UBS noted that the first half of the group’s financial year is seasonally weaker than the second. "Therefore, we expect the market’s focus to be on the group’s commentary around the outlook for the second half of the year in light of potential disruption to volumes linked the ongoing conflict in the Middle East," the bank said.
"Beyond the current trading conditions we expect the group to provide an update on its strategic priorities as well as the ongoing review of the European rail operations."
UBS said current Visible Alpha consensus for H1 EBIT is £56m, versus its forecast of £53m.
In the US, first-quarter earnings from Home Depot will be in focus.
On the macroeconomic calendar, the latest UK unemployment and average earnings figures will be released, along with eurozone trade data for March.
Danni Hewson, head of financial analysis at AJ Bell, said: "Anyone that’s filled up their vehicle in the past few weeks will be acutely aware of the impact the Iran war and continued logjam in the Strait of Hormuz are having on the price at the pump.
"People are increasingly nervous about their household budgets and the strain that another brush with high inflation could have on their standard of living. But official data due out this week is expected to show a fall in the headline rate for April, with CPI likely to have dropped back to around 3% after edging up in March. The quirk is primarily down to the fall in the energy price cap, brought about by the government’s intervention announced at last year’s Budget.
"Unfortunately the relief is expected to be short lived, with the new price cap to be announced next week an early harbinger of an uncomfortable winter. The price of Brent crude is down from two-week highs of $111 a barrel, but still well above the $100 level it is expected to remain at for much of the year if a quick resolution to the conflict doesn’t materialise.
"Markets are increasingly coming to terms with the impact a lengthy period of higher inflation will have on the global economy and the path of interest rates, as central bankers seek to balance the need to keep inflation in check alongside lower growth and economic weakness.
"April was supposed to finally be the month when the Bank’s 2% inflation target was met and there had been hope that the base rate might already have been cut to 3.5%. Instead, the Bank of England’s next move looks set to be an upward one, although markets currently don’t expect a change until July or even September as they wait to see how the energy price shock takes hold."