All eyes are on the food sector this week with Sainsbury's, Morrisons and Marks and Spencer all expected to update the City on Christmas trading.

Sainsbury's will provide an update on Thursday (11 January). Analysts are predicting the chain to report like-for-like sales growth of between 4-5%. Online sales could have increased by as much as 60% over Christmas, according to reports in the Daily Telegraph.

The retailer could also launch a £70m campaign slashing the price of up to 1,000 items, according to The Sunday Times. The campaign would follow similar price cut campaigns by Tesco and Asda.

Analysts are expecting Stuart Rose, CEO of Marks and Spencer, to finally declare a recovery at the retailer in its update tomorrow (9 January).

The City has predicted the chain will report its best Christmas performance to date, with like-for-like growth of 6%. Like-for-like food sales could be up by as much as 5%, according to broker UBS.

Morrisons will give its update on Wednesday (10 January). The retailer is predicted to report like-for-like sales growth of 5%.