Macro events dominate next week with updates on the health of the UK economy and Halifax’s monthly house price index two things to note.
Ahead of that, on Sunday, is the latest OPEC+ meeting, with all eyes on whether a further cut in production to prop up oil prices will be pushed ahead.
The cartel caught traders on the hop back in April with a production cut of around 1.2mln barrels a day that prompted a spike in the price of crude.
But Reuters reported it is unlikely to repeat the move on Sunday despite a fall in oil prices toward $70 per barrel this week, citing four sources from the alliance.
Halifax meanwhile will release its health check of the UK housing market on Wednesday after industry rival Nationwide reported the biggest drop in house prices for 14 years this week.
The building society reported that the average price of houses sold in May was 3.4% lower than a year ago, down from the 2.7% fall recorded in April.
“Headwinds to the housing market look set to strengthen in the near term,” said Robert Gardner, Nationwide's chief economist, so it will be interesting to see if Halifax agrees.
British American Tobacco is the standout among the expected corporate news with new chief executive Tadeu Marroco overseeing his first update, having expectedly taken over in May from Jack Bowles.
The firm’s share price has lost close to a quarter of its value in the year-to-date as the company battles with regulatory tightening on smoking, including the potential banning of menthol.
Investment group AJ Bell analysts said: “Strategically, analysts and shareholders will look for comment on the prospect of new legislation in the USA where the FDA continues to investigate menthol and flavoured cigarettes.”
Other updates are due from M&G, Wizz Air, Crest Nicholson and FirstGroup, while in the US we have an update from meme stock favourite Gamestop.
Monday 05 June
Oil traders will be reflecting on the outcome of the latest OPEC+ meeting having already been warned by one participant to be careful if they were thinking of shoring the crude price.
“I would just tell them to watch out,” Saudi minister Prince Abdulaziz bin Salman said, hinting that those betting against oil price rises could be left hurting after the meeting in Vienna.
Major announcements due
Interims: Hercules Site Services PLC (AIM:HERC)
Finals: Celadon Pharmaceuticals PLC (AIM:CEL), Itaconix PLC (LSE:ITX, OTCQB:ITXXF), Sirius Real Estate Ltd, ValiRx PLC (AIM:VAL), Verici Dx PLC (AIM:VRCI)
AGMs: EnQuest PLC
Economic announcements: OPEC+ meeting outcome, PMI Composite (UK), PMI Services (UK), PMI Composite (US), PMI Services (US), Factory Orders (US), ISM Prices Paid (US), ISM Services (US)
Tuesday 06 June
Paragon Banking is in the teeth of the buy-to-let storm currently raging, as that is one of the mortgage lender’s specialist areas.
UBS expects underlying profit before tax of £118m, and a CET1 ratio (solvency) of 15.5%.
“In our view, the focus of the results will be on the NIM (margin) performance and outlook, given rising deposit rates/funding costs in the higher interest rate environment, mortgage affordability of professional BTL (buy-to-let) landlords, any emerging signs of credit stress, liquidity and funding outlook and plans for capital returns.”
Major announcements due
Trading updates: Hunting PLC (LSE:HTG), British American Tobacco PLC (LSE:BATS)
Interims: Gooch & Housego, Oxford Metrics (AIM:OMG) PLC, Paragon Banking Group PLC (LSE:PAG), Chemring Group (LSE:CHG)
Finals: Brown (N) Group PLC, NewRiver REIT PLC (LSE:NRR), Speedy Hire PLC (LSE:SDY), Warehouse REIT PLC (AIM:WHR)
AGMs: Billington Holdings Plc (AIM:BILN), M Winkworth Plc (AIM:WINK), Mast Energy Developments PLC (LSE:MAST), NB Global Monthly Income Fund Ltd (LSE:NBMI), Starwood European Real Estate Fin Ltd, Tasty PLC (AIM:TAST)
Economic announcements: BRC Sales Monitor (UK), PMI Construction (UK)
Wednesday 07 June
Those with any serious Interest in the stock market and investing will be aware of GameStop.
A couple of years ago, the US videogame and merchandise retailer became the centre of a retailer investor “rebellion” against short-selling hedge funds through organised buying via the Reddit platform.
Alas from the point of view of its own trading performance, the hedge funds might yet prove to be correct something that today’s update might underline.
Halifax also releases its latest UK housing index update.
Major announcements due
Trading updates: LXi REIT PLC (LSE:LXI), Industria de Diseno Textil SA
US earnings: GameStop Corporation
Interims: Ramsdens Holdings PLC (AIM:RFX), Residential Secure Income REIT PLC (AIM:SIR)
Finals: DiscoverIE Group PLC, Evgen Pharma PLC (AIM:EVG), Vp PLC
AGMs: City Pub Group PLC (AIM:CPC), Gem Diamonds Ltd, Gulf Marine Services PLC (AIM:GMS), Pennant International Group, Third Point Investors Ltd, United Oil & Gas PLC (AIM:UOG)
Economic announcements: Halifax House Price Index (UK), MBA Mortgage Applications (US), Balance of Trade (US), Crude Oil Inventories (US), Consumer Credit (US)
Thursday 08 June
By far the busiest day of the week from a company perspective. Aside from the debut of BAT’s new chief executive, just how badly rail and bus operator FirstGroup has been affected by the spate of rail strikes will also be of note.
The answer is not at all, if the union RMT’s Mick Lynch is right, though UBS sees revenues of £4.8bn (2022: £4.6bn), underlying profit [Ebit] of £144mln (£227mln) and net income of £60m (£107m).
RWS is also one to keep an eye on. The document translator is right in the firing line for AI developments and whether it is feeling any impact will be worth noting.
Housebuilder Crest Nicholson will give a developer’s insight into the housing market while Wizz Air should be suitably upbeat after bumper passenger numbers in May.
Also, expect a positive update from fund manager M&G next week, says UBS, with the Swiss bank forecasting a significant increase in first-quarter net inflows into its wholesale (retail) asset management business.
Based on Morningstar data, UBS estimates net fund flows of £4.4bn during the first quarter compared to net inflows of £0.5bn over the whole of 2022.
Even allowing for a large institutional mandate, net inflows are still predicted to be £3bn by the broker, with total AUM to be £350bn.
Ex-divs are tipped to knock seven points off the FTSE 100.
Major announcements due
Trading updates: M&G PLC
US earnings: Signet Jewelers Ltd, DocuSign Inc
Interims: IDOX PLC, RWS Holdings (AIM:RWS) PLC, Crest Nicholson Holdings
Finals: DiscoverIE Group PLC, FirstGroup PLC (LSE:FGP), Mitie Group PLC (LSE:MTO), Schroder Real Estate Investment Trust (LSE:SREI) Ltd, Wizz Air Holdings PLC (AIM:WIZZ)
AGMs: Checkit PLC (AIM:CKT, OTC:ECKTF), Downing Renewables & Infrastructure Trust PLC (LSE:DORE), Fair Oaks Income Ltd, Genflow Biosciences PLC (LSE:GENF), Glenveagh Properties PLC (LSE:GLV), Invesco Perpetual UK Smaller Cos Inv Tst PLC, Kavango Resources PLC (LSE:KAV, OTC:KVGOF), London & Associated Properties plc (LSE:LAS), Melrose Industries PLC (LSE:MRO, OTC:MLSPF), Nippon Active Value Fund (LSE:NAVF) PLC, North American Income Trust PLC, Oriole Resources PLC (AIM:ORR), Phoenix Copper Ltd (AIM:PXC, OTCQX:PXCLF), Sopheon PLC (AIM:SPE)
Economic announcements: RICS Housing Market Survey (UK), Continuing Claims (US), Initial Jobless Claims (US), Wholesales Inventories (US)
Ex-dividends to reduce FTSE 100 by: 7.34
Friday 09 June
No major announcements scheduled
US earnings: NIO Inc (NYSE:NIO)
Finals: Industrials REIT Ltd (LSE:MLI, JSE:MLI)
AGMs: Arecor Therapeutics PLC (AIM:AREC), Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF), M P Evans Group PLC, S4 Capital PLC (LSE:SFOR), Univision Engineering
Economic announcements: Unemployment Rate (US), University of Michigan Confidence (Preliminary) (US)