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The Markets
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Energy

Tuesday diary could be livened up by Johnson confidence vote fallout

Retail sales data will be released overnight and a services sector PMI survey is due mid-morning

On Tuesday, investors could wake to the prospect of a new face in Number 10, as well as a sprinkling of company results and economic data.

Conservative MPs will vote on Monday evening and if Boris Johnson fails to win support from half of his House of Commons colleagues, this will dominate the news in London, with attention also turning to his replacement and the effect on the country and economy.

"While the uncertainty of who could run the country may temporarily hurt market sentiment, the economy and markets would likely benefit if the UK is no longer [led] by an unpredictable populist," said senior economist Kallum Pickering at Berenberg.

There are a trio of investment trusts results in the diary, as well as interims from optical products maker Gooch & Housego, which issued a profit warning in April.

G&H said at the time that its order book was at record levels but that "pandemic related factors" were holding first-half revenue back, resulting in profit before tax being at least £2.5mln below previous guidance.

Expecting a higher second-half weighting and a payback for investment in manufacturing capacity and supply chain, this means the outlook statement could contain better or worse news.

In the macroeconomic news, the British Retail Consortium's Retail Sales Monitor will be released at midnight, with figures for May up against an extremely strong month a year earlier, which was the first full month that non-essential shops were allowed to open after the new year lockdown.

Despite the sharp increase in prices, total sales values in May 2022 are not expected to have grown year-on-year.

As purchasing managers' index report from S&P Global/CIPS at 9:30am was 51.8 at the 'flash' reading a few weeks ago, a sharp drop on the previous month.

Although the preliminary services PMI readings have been revised up by an average of 0.5 points in the previous six months, Pantheon Macroeconomics said the drop in the flash reading "makes sense, given the backdrop of falling real incomes".

Tuesday 7 June

Finals: LXi REIT PLC, NewRiver REIT PLC, Schroder Real Estate Investment Trust

Interims: Gooch & Housego PLC

AGMs: Animalcare Group, Arix Bioscience PLC, Centrica PLC, Integrated Diagnostics Holdings Plc, Kooth PLC, Ondine Biomedical Inc, Osirium Technologies PLC, SpaceandPeople PLC, TruFin PLC

Economic announcements: Retail Sales (UK), PMI Services (UK), Consumer Credit (US)

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