Friday preview: China data, London Stock Exchange in focus
InterContinental Hotels Group
7,816.00p
17:05 19/04/24
Markets' focus will switch back towards China at the end of the week with a barrage of economic indicators set for release, including readings on third quarter gross domestic product, as well as on on retail sales, industrial production and fixed asset investment for the month of September.
Financial Services
14,075.11
17:09 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
London Stock Exchange Group
8,984.00p
17:15 19/04/24
Travel & Leisure
7,521.61
17:10 19/04/24
Expectations are for the rate of GDP growth over the third quarter to be little changed from the prior three-month stretch at up by 6.6% year-on-year.
Nevertheless, given prospects for further policy tightening from the US Federal Reserve, a slowdown in inflation pressures and the risk of a worsening cross-Pacific trade spat, investors are increasingly cautious.
Against that backdrop, investors are also waiting on the release of the latest public sector borrowing figures for September, at 0930 BST.
Euro area balance of payments data for August is also scheduled for release, with the figures pertaining to the bloc's financial account likely to be closely watched for any indication that capital outflows from Eurozone sovereign bonds are slowing.
Stateside, the spotlight will be on the latest quarterly results from some of the country's main financial groups, including: Citizens Financial, State Street and Sun Trust Banks, alongside those of Honeywell and Procter&Gamble.
On the corporate side of things, the London Stock Exchange is among the firms that are scheduled to provide a trading update at the end of the week.
Analysts at UBS have penciled-in a 2.6% quarter-on-quarter dip in the group's net income for the period to £526.3m and a gain of 8.3% year-on-year.
In particular, the Swiss broker expected the markets' focus to be on the group's index business (FTSE Russell) and its OTC clearing arm (LCH).
Revenues from the capital markets division were expected to be the weakest link in the chain, with UBS forecasting a 6.0% drop quarter-on-quarter, but mainly as a result seasonality.
Also due out with updates on Friday are Intercontinental Hotels and Provident Financial.
For the former, Numis analyst Tim Barrett was projecting growth in third quarter group revenues per available room of 2.9% following a rise of 2.4% during the prior quarter.
Trading in Europe was expected to have been strongest, with RevPAR growth of 5.5% for August after a 7.0% increase in July, versus the 4.9% increase seen over the first half of the year.
In Asia Pacific on the other hand, growth was expected to decelerate.
Stateside, RevPAR was expected to pick-up from flat during the previous period to 1.4%.
From a valuation standpoint, Barrett pointed out how even after their recent de-rating, the shares were changing hands at 12.2 times' EV/EBITDA, versus a cross cycle range of approximately eight to 15.
As for Provident, Numis was looking for an absence of significant further deterioration in its credit quality, rather than an improvement.
Regarding the firm's Home Credit unit, Christmas was expected to provide the opportunity for the business to deliver the "next material stage of recovery," Numis said.
Friday October 19
INTERIM DIVIDEND PAYMENT DATE
Applegreen, Braime (T.F.& J.H.) Holdings (Non-Voting), Christie Group, Costain Group, Derwent London, Eddie Stobart Logistics , Epwin Group, Foresight 4 VCT, Harworth Group, Henry Boot, Hunters Property , Hydrogen Group, Inmarsat, Intertek Group, Lighthouse Group, Nucleus Financial Group , Petrofac Ltd., Phoenix Spree Deutschland Limited Shs NPV , Robert Walters, Sanne Group, Shire Plc, Vitec Group
QUARTERLY PAYMENT DATE
Palace Capital
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Current Account (EU) (09:00)
Existing Home Sales (US) (15:00)
Q3
Schlumberger Ltd.
SPECIAL DIVIDEND PAYMENT DATE
Hargreaves Lansdown
EGMS
Air China Ltd.
AGMS
Ashmore Group, Dechra Pharmaceuticals, Purplebricks Group
TRADING ANNOUNCEMENTS
Record
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Public Sector Net Borrowing (09:30)
FINAL DIVIDEND PAYMENT DATE
Hargreaves Lansdown, HML Holdings, Kainos Group , Norish Units, Oxford Instruments