Indices, General, Forex

Updates from the UK, Europe and the US make for a compelling week ahead

David Papier, Monday, 21 May 2018

Last week the dollar carried on strengthening against the Euro and GDP which are once again trading back near the lowest level seen this year against the greenback.  This helped push European indices, such as the export dominated German DAX and the FTSE 100, which consists mainly of international earning companies, to trade near all time record highs. The latter being the stand out performer now less than 1% from the highest level ever recorded in history.

Oil continued to march to near 3½ year highs, taking total gains for 2018 to circa 17% on concerns about U.S. sanctions on Iran, which are likely to restrict crude oil exports from one of the biggest producers in the Middle East. Traders will need to watch for further developments with Iran and also EIA data out on Wednesday as potential catalysts for the next move.

With currencies having such a large influence on current markets, all eyes move towards next week as we receive important data and updates from the UK, Europe and the US.

A big week for the UK kicks off with inflation data out in the form of CPI on Wednesday, followed by the latest Inflation Report Hearings, rounding off the week with UK GDP data on Friday.

The highlights for Europe and the US will be the latest ECB Monetary accounts and FOMC Minutes which can hopefully provide clear guidance on the future of monetary policy and interest rates on both continents.

Reporting season is now wrapping up however, we still have a few notable companies providing updates next week. The UK’s largest clothing retailer, Marks & Spencer’s,  report Full-Year earnings on Wednesday which investors will want to see an improvement in clothing sales to help push the shares up from their current 10% decline in 2018. Major utility companies have been seemingly out of favour over the past 12 months, it will be interesting to see the latest numbers from the likes of Severn Trent, SSE and United Utilities to see if the pick up from 2018 lows is sustainable.

With currencies, indices and equities all trading at key levels, next week could be one to watch.

Economic Calendar (all times are in BST)

Monday, 21sth May

00.50 JP Trade Balance - Exports YoY

00.50 JP Trade Balance- Imports YoY

00.50 JP Trade Balance

Tuesday, 22nd May

No High Impact Data

Wednesday, 23rd May

01:30 JP PMI Flash – Manufacturing

07:00 DE GDP Detailed QoQ

07:00 DE GDP Detailed YoY

09:00 EU PMI Flash Composite

09:00 EU PMI Flash Services

09:30 UK CPI YoY

15:00 EU Consumer Confidence Index – Flash Estimate

15:30 EIA Crude Oil Stocks Net Change

Thursday, 24th May

07:45 FR Business Sentiment Index

09:30 UK Retail Sales MoM

09:30 UK Retail Sales YoY

13:30 US Employment Claims

15:00 US Existing Home Sales – Total Sales

Friday, 25th May

00:30 JP Tokyo Core CPI YoY

09:00 DE Business Survey IFO Business Sentiment Index

09:30 UK GDP Revised QoQ

09:30 UK GDP Revised YoY

01:30 US Durable Goods Total Orders

15:00 US University of Michigan Consumer Sentiment Survey

Corporate Calendar

Monday, 21sth May

BGEO – Interim Results

LXI Reit Plc – Final Results

McKay Securities Plc –Final Results

SigaRoc Plc  - Final Results

 Tuesday 8th May

Close Brothers Group Plc – Trading Statement

Bloomsbury Publishing Plc -Final Results

Big Yellow Group Plc -Final Results

Cranswick Plc -Final Results

Halfords Group Plc -Final Results

NEX Group Plc -Final Results

Shaftesbury – Interim Results

Topps Tiles – Interim Results

UDG Healthcare – Interim Results

Wednesday 9th May

Babcock International Group Plc – Final Results

Dairy Crest Group Plc – Final Results

Great Portland Estates– Final Results

Marks and Spencer’s Group Plc – Final Results

Severn Trent Plc – Final Results

Vedanta Resources – Final Results

Britvic Plc –Interim Results

Ralph Lauren Corp – Earnings Announcement

Tiffany & Co – Earnings Announcement                                                                           

 Thursday 10th May

Tate & Lyle Plc – Final Results

United Utilities Group Plc – Final Results

Wizz Air Holdings Plc – Final Results

Go Ahead Group – Trading Statement

Inchcape Plc – Trading Statement

Intertek Group Plc – Trading Statement

Kingfisher Plc – Trading Statement

Daily Mail and General Trust – Interim Results

Companies paying dividends: 

Advanced Medical Solutions Group PLC [AMS] (0.75 p)

Avingtrans PLC [AVG] (1.3 p)

British & American Investment Trust Plc [BAF] (5.9 p)

Balfour Beatty B [BBYB] (5.38 p)

Bunzl PLC [BNZL] (32 p)

BlackRock North Amer [BRNA] (2 p)

Bellway PLC [BWY] (48 p)

Ecclesiastical Insurance Office plc [ELLA] (4.31 p)

FDM Group (Holdings) Plc [FDM] (14 p)

X5 Retail Group N.V [FIVE] (1.29 USD)

Filta Group Holdings Plc [FLTA] (0.65 p)

Gattaca PLC [GATC] (3 p)

The Gym Group Plc [GYM] (0.9 p)

Hill & Smith Holdings PLC [HILS] (20.6 p)

Huntsworth PLC [HNT] (1.45 p)

Howden Joinery Group PLC [HWDN] (7.5 p)

Imperial Brands Plc [IMB] (28.44 p)

Kape Technologies Plc [KAPE] (3.55 p)

Manx Telecom [MANX] (7.5 p)

Mincon Group Plc [MCON] (0.01 EUR)

Midwich Group Plc [MIDW] (9.65 p)

Menzies (John) PLC [MNZS] (14.5 p)

Morrison (Wm) Supermarkets PLC [MRW] (4 p)

Morrison (Wm) Supermarkets PLC [MRW] (4.43 p)

OMV Petrom S.a. [PETB] (0.79 USD)

Premier Global Infrastructure Trust Plc [PGIT] (2 p)

SOCO International PLC [SIA] (5.25 p)

China Petroleum Chemical Corporation [SNP] (5.1 USD)

Spectris PLC [SXS] (37.5 p)

Ten Entertainment Group PLC [TEG] (7 p)

Town Centre Securities PLC [TOWN] (3.25 p)

Venture Life Group Plc [VLG] (0.04 p)

Whitbread PLC [WTB] (69.75 p)

Friday 11th May

Pennon Group –Final Results

SSE Plc –Final Results

Spectris Plc – Trading Statement

Foot Locker - Earnings Announcement

Sources: Bloomberg/Companies

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