The purchasing managers’ index (PMI) for the UK’s massive services sector should underline the shakiness of the recovery, with analysts predicting it will stay at a 52.6 reading - just into the over-50 territory signalling growth.
In contrast, the European Central Bank, which sets rates across the eurozone, looks poised to raise interest rates to combat price rises, in what would be the first rise since July 2008. “It remains more likely than not that the ECB will raise the main refinancing rate … by 25 basis points to 1.25pc,” said RBS analysts.
Expectations of a rise have helped support the euro despite Europe’s debt crisis.
On the corporate front, Marks & Spencer will update the market on its fourth quarter trading, and the chain is expected to have had a tough time since the turn of the year.
Analysts expect general merchandise sales - that is sales of everything bar food - to have fallen by 6.2pc. The range of sales expectations, from 15 city analysts, stretches from minus 8pc to minus 4pc. Food sales are expected to have risen by 1.3pc, with the range spanning flat sales to a sales rise of 3pc.
Overall, analysts expect overall sales to have fallen by 2.5pc.
The negative figure will reflect what other chains have been saying over the last few weeks - that customers are reigning in their spending as household budgets get squeezed.
However M&S will not have fared as badly as some rivals. Its positioning at the top end of the market means that it is shielded from some of the discounting that more down-market rivals have been getting involved in. Customers have also be 'trading up’ into higher quality garments, which would have helped M&S.
Monday April 4
Hyder Consulting will provide a trading update today. Investors will keen to find out whether the company’s Middle East business has picked up. At the company’s last trading update, Hyder said the Middle East “remains challenging, and progress on contract starts are still somewhat protracted”.
Full-year results: Dods Group , Graphite Enterprise
Interim results: Nanoco
Trading update: Hyder Consulting
Economics: Bank of England’s housing equity withdrawal figures for 2010 Q4, construction PMI
Meetings: XP Power
Tuesday April 5
Porvair, the filtration specialist, will update the market on trading as it holds its annual shareholder meeting on Tuesday. At its full-year results in January, Porvair posted an 82pc rise in profits to £3.1m and a 15pc rise in revenues to £63.6m.
At the time, the company said that 2011 had started well with revenues in December and January ahead of the prior year and the momentum in the second half of 2010 carrying forward into the new year.
Porvair makes filtration and separation equipment for aviation, energy and environmental technology businesses. In February, it won a nuclear filtration order for €600,000 (£529,444).
Full-year results: Asia Digital Holdings, Bond International Software, Enquest, Immupharma
Interim results: None scheduled
Trading update: Aberforth Smaller Companies Trust, ING UK Real Estate Income Trust, Next Fifteen Communications, Porvair
Economics: Services PMI
Meetings: Scotty Group
Wednesday April 6
IT supplier Misys is expected to report continued growth of its banking software services. However, today’s interim management statement is expected to be scarce of details. Sales in the first six months of its financial year rose 2pc to £161m, although operating profit fell 3pc to £23m.
Earlier this year Misys set out plans to return a further £145m to investors, as it shares the spoils of last year’s sale of healthcare software joint venture Allscripts-Misys. It had already used about £525m of the proceeds from the sale of the business, which runs electronic health records for doctors and hospitals, on a share buyback scheme.
It is the start of the new 2011-2012 tax year and measures effective from April 6 include: inheritance tax threshold frozen at £325,000 until 2014-2015; ISA limits indexed annually in-line with RPI; and an additional 5pc rate of stamp duty for residential property purchases over £1m.
Full-year results: Prezzo
Interim results: None scheduled
Trading update: Marks & Spencer, Misys, Robert Walters, XP Power
Economics: Industrial production data for February, Nationwide consumer confidence index for March
Meetings: None scheduled
Thursday April 7
Halfords, the bicycle and car parts chain, will update the market on recent trading. The company said in January that full-year pre-tax profit will be at the lower end of market expectations. The company has been hit by the general slowdown in consumer spending that has knocked most high street retailers. Its recent move into camping equipment could soon reap benefits, though, as Britons start plotting their summer breaks.
Hays, Britain’s largest recruitment company, is announcing quarter three results. Last month the business played down a 36pc fall in income from public sector jobs for the six months to December as “expected”. Analysts forecast the group will continue to see significant opportunities for growth overseas, including Asia. The company is on track to report pre-tax profits of £106m in the year to 30 June 2011, according to Credit Suisse, recovering from an 80pc slump in profits before tax the previous year. The 2010 figures were dented by a £30.4m fine imposed by the Office of Fair Trading for price fixing, which was reduced to £5.9m by the Competition Appeal Tribunal in London last week.
Full-year results: Asterand, Hydrodec
Interim results: None scheduled
Trading update: Hays, Halfords, Victrex
Economics: ECB interest rate announcement, Bank of England’s rate decision, labour productivity data for 2010 Q4
Meetings: Scottish American Investment
Friday April 8
Vedanta issues full year production numbers. Investors will be keen to hear any update on the proposed offer to buy Cairn Energy’s Indian oil fields. This is because a decision will provide greater clarity over the direction of the company and group debt structure. The flotation of its Konkola Copper Mines unit was pulled at the end of last year so any comment on this will be important. Any news on whether the company will be granted permission to mine bauxite in Orissa is also of note.
Full-year results: None scheduled
Interim results: None scheduled
Trading update: Vedanta Resources
Economics: Producer prices for March
Meetings: None scheduled For the latest updates PRESS CTR + D or visit Stock Market news Today
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