Wednesday preview: Greggs update, US PCE in focus.

Source: Sharecast

In the US, quarterly results from Micron, Conagra Brands and FactSet Research Systems are due.

Kathleen Brooks, research director at XTB, said Micron’s earnings could be a key driver for the AI trade. "Investors will be watching margins, revenue, projected demand and earnings. Margins are particularly in focus due to surging memory costs," she said.

"Micron has projected revenues of $50bn and gross margins of 86%, so any deviation from this guidance may trigger stock market volatility, and the options market is currently projecting a move of 8% in either direction.

"Attention will also shift to the revenue outlook and capex spending, which is expected to be $10bn for next quarter. Some analysts are concerned about the longer term outlook, and the stock price is already higher by 266% YTD, so there is not much room for error."

Investors will also turn their attention to second-quarter GDP figures for the UK and the US, as well as the US PCE print, which is the Federal Reserve’s preferred measure of inflation.

Richard Hunter, head of markets at Interactive Investor, said the August PCE is expected to rise to 0.4% from 0.2% month-over-month although unchanged year-over-year at 3.7%