China takes centre stage on Wednesday as market participants will shift focus on the China flash PMI numbers due out.
The overall sentiment for the China markets still remains bearish, whilst key data to gauge the health of the Chinese economy has remained soft for an extended period.
FXTM Research Analyst Lukman Otunuga “Asia’s key risk this week will be the China flash PMI on Wednesday in which a release below expectations will expose both the China markets and US dollar to more vulnerability.”
Meanwhile, the European Central Bank presidential speech given by Mario Draghi on Wednesday will also be worth keeping an eye on for investors.
In corporate news, investors will get another perspective on the beleaguered oil sector when Smiths Group reports its full-year results.
The solutions company has said in recent updates it has seen good performances from the medical and Flex-Tek divisions.
“However,” Graham Spooner at the Share Centre said, “given the backdrop of oil prices, some in the market have been voicing concerns for the oil services business, despite this division performing relatively well too.”
“Therefore investors will pay close attention to the size of the division’s order book,” he added.
Significant announcements expected
Finals: Smiths Group (LON:SMIN), Pan African Resources (LON:PAF).
Interims: Styles & Wood Group (LON:STY), eg Solutions (LON:EGS).
Trading statement: United Utilities Group (LON:UU.).
Economic: UK – Mortgage lending figures, US – Mortgage applications, Crude oil inventories.