UK Jobs Data and Home Depot Earnings in Focus Tomorrow

Tomorrow's economic calendar is highlighted by UK jobs data for June, including average earnings and unemployment figures. Analysts at AJ Bell note that Home Depot, a US home improvement retailer, reaffirmed its full-year guidance in May after reporting better-than-expected first-quarter results.

The company's business model, which focuses on professional customers, is seen as resilient despite headwinds from housing affordability and elevated mortgage rates. Recent data on shingles roofing shipments suggests that homeowners are finally addressing urgent repairs, such as leaky roofs.

With Home Depot shares underperforming the S&P 500 by around a third over the past year, investors will be watching for signs of continued resilience. As for the UK jobs data, pay growth is expected to slow, but the pace of deceleration may be limited by base effects, according to Patrick Munnelly at Tickmill Group.

The wage data will be crucial for the Bank of England, which has been trying to look through external energy shocks while watching for second-round effects in wages and prices. If pay growth slows convincingly, it would support Governor Bailey's message that the Bank is not edging toward a hike.