This week sees another slew of trading updates from house builders that might clarify the state of the housing market.
The assumption had been that the Conservative Party’s victory in the General Election would lead to renewed impetus in the UK housing market, as it saw off the threat of the so-called “mansion tax” being introduced by Labour and Liberal Democrat politicians.
A trading statement last week from the sector leader Persimmon certainly backed up that prognosis, but house price figures from the Nationwide Building Society indicated the housing market went off the boil in June.
Sector heavyweights Bovis, Barratt and Taylor Wimpey all update the market this week, and should provide more clarification on the current state of the UK housing sector.
In the retail space, glamour stock ASOS issues a trading update covering its fiscal third quarter in which shareholders will be hoping that the company’s regained impetus in overseas markets has been maintained.
The reporting period will cover the April to June period, which last year included a disruptive fire in a warehouse.
Deutsche Bank, which recently upped its price target to 3,600p, expects to see an acceleration in growth rates in the European and North American regions, but the UK operations might offset this, as the comparative period in 2014 saw a lot of heavy discounting, which artificially stimulated growth.
In the rest of the world, the slide in the value of the Aussie dollar and the Russian rouble are likely to slow down growth, the German bank reckons.
Significant announcements expected
Monday
Interims: RM (PLON:RM)
Finals: Trakm8 Holdings (LON:TRAK)
Trading update: Bovis Homes (LON:BVS), easyJet (LON:EZJ)
Economic: UK – Halifax house price index, New car registrations. US – ISM non-manufacturing composite.
Tuesday
Finals: Bacit (LON:BACT), Solid State (LON:SOLI)
Trading update: ASOS (LON:ASC), Marks & Spencer (LON:MKS)
Economic: UK – Industrial production, BRC shop price index, NIESR GDP estimate. US – Consumer credit.
Wednesday
Trading statement: Taylor Wimpey (LON:TW.)
Economic: UK – RICS house price balance. US - Crude oil inventories,
Thursday
Finals: Mirada (LON:MIRA), NCC Group (LON:NCC), Supergroup (LON:SGP)
Trading statement: Associated British Foods (LON:ABF), Barratt Developments (LON:BDEV), Dunelm Group (LON:DNLM), Grafton Group (LON:GFTU), Hays (LON:HAS)
The following stocks are trading ex-dividend on Thursday: TalkTalk, Next, Vedanta Resources
Economic: Asia – Chinese consumer prices, Chinese producer prices. UK – BOE asset purchase target, BOE interest rate decision. US – Initial jobless claims.
Friday
Finals: Mercia Technologies (LON:MERC)
Economic: Asia – Chinese new yuan loans. UK – Construction output