Next week, the Organization of the Petroleum Exporting Countries (OPEC)will meet and the odds look very low for a reversal of its current strategy, despite the cost associated with it.
Companies have been hoping that OPEC will lower its output in an effort to help the low oil price rebound somewhat.
But, according to Panmure Gordon, in the absence of OPEC action, rebalancing will have to come on the back of higher demand and stalled or potentially declining non-OPEC supply.
“In the absence of a concrete decision to curtail output next Friday, OPEC may be contemplating a more proactive role including calling the next meeting for Spring, raising the current 30mmbbl group target, and allocating the target to individual members,” the broker said.
Investors will be keen to see if any changes, though unlikely, will be made, and any significant reaction in oil stocks will be closely monitored.
Still, there could be upside, as the broker said it remains cautious on the sector, it said when the turn does come, “we expect it to be sharp.”
On the corporate front, Alton Towers and Legoland owner Merlin Entertainments provides its full year trading update on Tuesday.
The announcement, as with its September nine month update, is likely to see its June Alton Towers accident continuing to overshadow.
“Reduced visitation across its Resort Theme Parks division, primarily at the Alton Towers Resort, compounded by poor August weather, offset a strong performance by its Legoland Parks business,” Keith Bowman at Hargreaves Lansdown said.
Euro weakness also continued to hit visit numbers to its London attractions, he added.
He reckons the best investors can hope for is any reiteration of prior management guidance for group underlying pre-tax profit to be broadly in line with last year.
Elsewhere, electronic components distributor Acal (LON:ACL) will report its half-year results on Monday.
The firm is expected to show good progress in its interims, despite uncertain markets and currency headwinds, according to Sanlam Securities.
Revenue for the period is expected to be up 18% or 30% on a constant currency basis, while on a like for like (LFL) basis it is forecast to be around 2% higher with an improving gross margin feeding into a better operating performance.
“The results could benefit from the Noratel and Foss acquisitions while cross-selling initiatives are beginning to be seen,” Sanlam added.
Revenue is expected to be around £143mln for the period, with earnings [EBITDA] of £7.5mln on a margin of 5.2%.
Significant announcements expected:
Monday
Final: Aberdeen Asset Management (LON:ADN), Intelligent Energy Holdings (LON:IEH)
Interim: KCOM Group (LON:KCOM), Palace Capital (LON:PCA), Great Eastern Energy Corporation (LON:GEEC), Cranswick (LON:CWK),
Trading statement: IG Group Holdings (LON:IGG)
Economic: UK – Mortgage approvals; US – Chicago PMI
Tuesday
Final: Topps Tiles (LON:TPT), Character Group (LON:CCT)
Interim: Collagen Solutions (LON:COL), OPG Power Ventures (LON:OPG), Park Group (LON:PKG), Northgate (LON:NTG), TCS Group Holding (LON:TCSA), GB Group (LON:GBG)
Trading statement: Merlin Entertainments (LON:MERL)
Economic: UK – PMI manufacturing; Eurozone – PMI manufacturing, unemployment rate; US = ISM manufacturing, unemployment rate
Wednesday
Final: Urban&Civic (LON:UANC), Brewin Dolphin Holdings (LON:BRW), Sage Group (LON:The) (LON:SGE)
Interim: Iomart Group (LON:IOM), Greene King (LON:GNK)
Economic: UK – PMI construction; Eurozone – PPI
Thursday
Final: GW Pharmaceuticals (LON:GWP), Elegant Hotels Group (LON:EHG), Impax Asset Management (LON:IPX)
Interim: Smith (LON:DS) (LON:SMDS), Imimobile (LON:IMO), Mercia Technologies (LON:MERC)
Companies trading ex-dividend: Royal Mail (LON:RMG), UK Mail Group (LON:UKM), Land Securities Group (LON:LAND), Bellway (LON:BWY), Debenhams (LON:DEB), JD Sports Fashion (LON:JD.)
Economic: UK – Official reserves; Eurozone – PMI Retail sales, ECB interest rate
Friday
Interim: Berkeley Group Holdings (LON:BKG)
Trading statement: easyJet (LON:EZJ)
Economic: Eurozone – PMI retail; US – Balance of trade