IG Group PLC (LON:IGG) will issue a pre-close season trading update on Wednesday with investors hoping that the online trading giant’s fourth-quarter performance will be an improvement on the weakness seen in the previous three months.
Back in March, IG revealed that its latest quarterly revenues fell by 3.8% during “a quiet period in global financial markets” and against an uncertain regulatory background.
However, the FTSE 250-listed group also pointed out that its fourth quarter had started better, although it said that it “is impossible to predict the market conditions for the rest of the year or to draw precise conclusions at this stage.”
READ: IG sees revenues fall during "quiet" third-quarter
The group noted that active client numbers were up 13% in the third quarter, driven by success in online marketing, but revenue per client was down by 15%, with current clients trading less often in a quiet period.
Since that update, financial markets have been revitalised, with UK and US stock indexes hitting new all-time highs, and investors will be hoping this will translate into improved trading for IG.
Regulatory issues remain a drag for the spread betting firms, although earlier this month IG and rival CMC Markets Plc (LON:CMCX) welcomed the outcome of a consultation by German regulator BaFin into the retail contracts-for-difference industry in country, as both firms said they already comply with the upcoming changes.
Ryanair doing fine despite Brexit noise
The spectre of Brexit, and the weaker pound, seems to have done little to dent the share price of low-cost carriers recently, with Ryanair (LON:RYA) up around 27% in the last three months. Next week, the Irish firm reports full year numbers, hot on the heels of peer Wizz Air (LON:WIZ) - another firm up over 37% in the same period. EasyJet (LON:EZJ) is also up over 44% in the same time frame. Indeed, chartist Zak Mir said in April he reckoned the stock could add the best part of 20% to its share price over the summer months. Investors will be keen to see whether the good growth in Ryanair's passenger numbers seen in March can be continued. In that month, Ryanair said it carried 9.4mln passengers, a 10% increase compared to March, 2016. Consensus points to a pre-tax profit for Ryanair of €1.315bn (£1.13bn) next week for the 12 months to March 31 - a target, which the firm thinks it will meet due to a drop in unit costs, namely operating costs divided by passenger numbers. In February, the firm said it was targeting full year unit costs, excluding fuel, to fall by 4% compared to a 3% fall, it had previously predicted.
Election gets personal as leaders go head-to-head
PM Theresa May and Labour leader Jeremy Corbyn takepart in a Question Time debate on Thursday evening while there will also be a debate between senior party leaders on BBC One mid-week.
Big week for economic data here and in the US
UK Manufacturing PMI is due Thursday with exporters post-Brexit boom likely to be the main focus, while Tuesday sees the GfK consumer confidence survey for May.
In the US, May non-farm payrolls come out on Friday at lunchtime.
Investec is forecasting a steady unemployment rate of 4.4% and a 175,000 payroll print, but flags the importance of the pay growth figures ahead of the 14 June FOMC decision.
“Hourly earnings growth has seemingly lost momentum since the start of the year and if it stays that way we can expect the Fed to stick with a cautious approach to rate rises and balance sheet reduction, later this year.”
Announcements due
Monday 29 May
Markets closed – Bank Holiday
Tuesday 30 May
Interim: AFI Development Plc (LON:AFRB)
Final: Ryanair (LON:RYA); Renold plc (LON:RNO); Horizon Discovery Group PLC(LON:HZD)
Wednesday 31 May
Finals: LondonMetric Property (LON:LMP);Telford Homes plc (LON:TEF);
Trading Statement: IG Group Holdings PLC (LON:IGG)
Thursday 1 June
Finals: FirstGroup (LON:FGP); Johnson Matthey PLC (LON:JMAT); ImmuPharma PLC (LON:IMM)
Friday 2 June
US Non-farm payrolls (1.30pm)