What's in store today...

Severn Trent (SVT) makes an appearance today. The water industry has been under careful watch since the bid for Northumbrian Water (NWG) was confirmed at the start of this month. Severn Trent is also not without its suitors, boasting attractive cash and profit levels, however this update is likely to focus on the trading environment.

In May, the FTSE 100-listed group said underlying group pre-tax profit decreased by 6.8% in the year to 31 March, while group turnover rose 0.4% and said it enters 2011/12 in a sound position.

Next up is the London Stock Exchange (LSE) which is likely to report that UK trading volumes have remained weak but IPO activity has improved.

"Market share has been stable for some time and we expect this to still be the case," said Numis analyst James Hamilton.

And flying the flag for the commodities sector will be BHP Billiton (BLT) with its fourth-quarter operations update.

Like its rival Rio Tinto (RIO), the FTSE 100-listed major had a tough March quarter, particularly in terms of its iron ore and coking coal output following the cyclones in the Pilbara area of Western Australia and the rains and floods in Queensland.

Tom Gidley-Kitchin, analyst at Charles Stanley, said: "Our sector view continues to be that there is major uncertainty in the markets at present, and that applies even more strongly to the mining sector with its high volatility. On a medium-term outlook, we believe supply and demand trends are very attractive, and also that the global diversified miners will be best placed to take advantage of opportunities.

"So for the present we are recommending that investors have an index weighting to the sector, in the face of uncertainty. Against that background, which we see as over-riding individual stock recommendations, for BHP we maintain an 'accumulate' recommendation."

Casting an eye on the economic calendar, the minutes of July's Bank of England Monetary Policy Committee (MPC) meeting are set for release today. The minutes will be closely examined for signs that the committee is warming to the idea of re-embarking on a round of quantitative easing (QE) to try and boost the economy.

Indeed, until the last few weeks, the focus had been on whether the MPC would raise interest rates from their current record low 0.5% but a recent extended series of weak data and surveys has heightened concerns over the state of the UK economy and its ability to withstand the fiscal squeeze.

"Although a revival of QE is clearly back on the table we doubt that any MPC member joined Adam Posen in voting for such a move at the July meeting. Indeed, we are doubtful that more QE will occur unless the economy sees sustained, very weak activity.

"Meanwhile, we expect the Bank of England to hold off from raising interest rates until the second quarter of 2012. Furthermore, whenever interest rates do start to rise the probability is that they will move up only gradually and remain very low compared to past norms," said Howard Archer, chief UK and European economist at IHS Global Insight.

Results

(Final) AEA Technology, Zetar

(Interim) ICON, International Personal Finance, Yell Group

Trading updates

BTG, BHP Billiton, Glanbia, Hochschild Mining, London Stock Exchange Group, Playtech, Severn Trent

AGM/EGMs

BTG Group, B.P. Marsh & Partners, Bedford Row, Chariot Oil & Gas, Digital Barriers, Experian, Fitbug Holdings, Investment Company, IQE, Maven Income and Growth, Renold, Rensburg Aim, Severn Trent

Ex-dividend payment date

British Smaller Companies, Castings, Charter European Trust, Fidelity China Special Situations, Halma, Heavitree Brewery, ICAP, Imperial Tobacco Group, Kewill, Mulberry Group, PME African Infrastructure Opportunities, Sanderson Group