The first full trading week of the year is set to see trading updates from a number of companies, as investors gear up for another earnings season.
Investors will be looking at Shell's latest trading update to get an idea how the company is performing as oil demand weakens.
The latest earnings from Walgreens Boots Alliance will also be in focus, following recent reports of talks around a potential private equity buyout deal.
In the UK, high street stalwart Marks & Spencer is one of a number of retailers due to release a Christmas trading update this week.
Meanwhile, investors will be looking to see if bakery chain Greggs served up a stronger final quarter of sales.
Here's more on what to look for:
Shell (SHEL.L) — Releases fourth quarter trading update on Wednesday, 8 January
Oil major Shell is set to give investors an update on how it has performed in the fourth quarter, with the full results due out at the end of January.
In the third quarter, Shell reported a slight fall in profits to $6bn (£4.83bn) though this still came in ahead of expectations.
Income attributable to shareholders came in at $4.3bn, which was up from $3.5bn in the second quarter, though much lower than the $7bn reported for the same period in the previous year. Shell said the third-quarter figure partly reflected weaker refining margins, lower realised oil prices and higher operating expenses.
Oil prices have been under pressure over the past year over concerns about reduced demand. Prices have also fluctuated because of the conflict in the Middle East and the economic slowdown in China, the world's largest importer of crude oil.
The global oil market is set to be in surplus in 2025, according to a recent forecast from the International Energy Agency. That's despite OPEC+ – which controls about half of the world’s oil output – deciding to extend supply cuts.
Warren Patterson, head of commodities strategy at ING, said that this surplus could see prices trending lower this year. He said that ING expected ICE Brent, a benchmark for crude oil, to average $71 per barrel over 2025.
Shell's full results for the fourth quarter are due out on 30 January, with investors looking to see if the company launches another round of share buybacks, having announced a further $3.5bn repurchase programme in its third-quarter results.
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Walgreens Boots Alliance (WBA) — Reports first quarter earnings on Friday 10 January
US pharmacy group Walgreens Boots Alliance finished 2024 as the worst performer in the S&P 500 (^GSPC), with shares diving 64% during the year.
The stock has fallen to its lowest point in nearly 30 years, with the company having faced challenges in the sector, such as pressure from the growth of online prescription delivery platforms.
In its fourth-quarter results, Walgreens posted a loss of $3.48 per share, versus $0.21 for the same period in 2023.
For the year, Walgreens' loss per share widened 180% to $10.01. Sales for its 2024 fiscal year rose 6% to $147.7bn.
The company also announced in the results that it planned to close approximately 1,200 stores over three years, 500 of which it would look to close in its 2025 fiscal year.
Walgreens shares briefly surged in December on reports that the company was in talks to be bought out by a private equity firm, which would take the company off the public market.
Other reports said that such a deal could trigger a fresh auction of UK chain Boots, which is part of the larger Walgreens Boots Alliance business.
For the 2025 fiscal year, Walgreens said it expected to generate earnings per share of $1.40 to $1.80, with growth in its US healthcare and international segments offset by a decline in US retail pharmacy.
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Marks & Spencer (MKS.L) — Releases Christmas trading update on Thursday, 9 January
Following its run of strong performance over the past year, investors will be looking closely at the Christmas trading update from M&S, as Christmas is a crucial period for the high street.
Shares are currently at their highest point since 2016, with M&S having posted a 35% increase in profit after tax to £278.6m in its first-half results in November.
The retailer reported nearly a 6% rise in sales to £6.5bn in the first half.
AJ Bell's investment experts Russ Mould, Danni Hewson, and Dan Coatsworth, said: "This Christmas update will be the next test for M&S, which traditionally makes more money in the second half of its financial year to March than the first, thanks to the festive season.
"That said, the year to March 2024 was an exception, as M&S used the springboard of a much-better-than-expected first half to invest again in the second, while the clothing business also had to take on considerable input cost increases."
They said that, while M&S CEO Stuart Machin may avoid any firm guidance on sales and profits for the full year, current market consensus is looking for a 5% increase in total group sales to £13.7bn and adjusted pre-tax income of £830m, versus £716m a year ago.
Prior to the release of the M&S Christmas update, clothing retailer Next (NXT.L) is slated to release its Christmas and fourth-quarter trading update on Tuesday, 7 January. Meanwhile, supermarket Tesco (TSCO.L) is also due to release its Christmas and third-quarter trading statement on Thursday, 9 January, and Sainsbury's (SBRY.L) is set to publish its Q3 update on Friday.
Data released Friday from the British Retail Consortium showed a 2.2% decline in footfall on UK high streets in December. While this is not a clear indicator of retail sales, given the rise of online shopping, it may add to concerns about retailers' performance in the festive period.
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Greggs (GRG.L) — Releases fourth-quarter trading update on Thursday, 9 January
Shares in Greggs have been under pressure since the food-on-the-go retailer released its third-quarter trading update at the beginning of October.
While Greggs said like-for-like sales in company-managed shops were up 5% in the third quarter, this was still slower than the 7.4% growth it recorded in the first half.
The slump in Greggs shares on the back of this most recent update has left the stock with a gain of just 7% on a one-year basis.
The company said that, while it acknowledged "ongoing economic uncertainty", it still expected the full-year outcome to be in line with previous expectations.
Matt Britzman, senior equity analyst at Hargreaves Lansdown (HL.L), said: "Markets are expecting headline revenue growth of just over 12% for the year, pushing annual revenue past the £2bn ($2.48bn) mark.
"Beyond the numbers, Greggs has made solid progress on key growth initiatives, including new delivery partnerships, menu upgrades, and extended evening hours.
"While these strategies are expected to gain further traction next year, the UK budget poses a challenge, with new tax changes likely to add tens of millions in costs," he added.
