Thursday preview: Mortgage lending data, Hunting and Hays in focus

The flow of economic data will pick-up a bit on Thursday, with figures on consumer credit and lending in the UK set for release, alongside a reading on the US Federal Reserve's preferred inflation gauge.

In particular among the former, markets will be keen to see how mortgage demand is holding up according to official data, especially ahead of a raft of corporate updates from the homebuilding sector in September and given all the talk around house price declines in London.

For some analysts, investor sentiment towards the sector is now excessively gloomy.

Following those figures, at 1330 BST the Department of Commerce will publish data on personal income and spending in the States during the month of July.

While important in and of themselves, investors will be especially mindful of Thursday's print on the price deflator for personal consumption expenditures - the US central bank's main gauge for measuring price pressures - which is contained in that same report.

Markets will also be keeping an eye out for preliminary readings on consumer prices in Germany and Spain for the month of August, especially in light of recent somewhat weak readings on the euro area economy, such as Tuesday's money supply figures.

On the corporate front, oilfield services outfit Hunting and recruitment specialist Hays are among the companies which are set to update investors.

For the former, analyst James Hubbard at Numis had penciled-in a 443% jump for the company's EBITDA over the first six months of 2018 to $64.0m, on the back of a 41.0% jump in revenues to $449.0m.

Nevertheless, Hubbard expressed concern around the company's narrow base for growth, which was centred on the Permian basin.

"On that issue concerns are rising (e.g. as cited by HAL and SLB on recent results conference calls) that Permian basin pipeline export constraints will cause a real fall off in drilling and fracking activity at least temporarily (but lasting several months, until new trunk lines come on-stream), and that such a pull-back would remove the main pillar supporting HTG’s EBITDA recovery," he said in a research note sent to clients.

For Hays, the consensus forecast was for full-year operating profits of £241.4m at the EBITA level.

Investors will be especially keen to hear what management has to say about the outlook for growth in its Rest of the World segment, following a strong showing in the fourth quarter.

There is also interest in whether the company declares a special dividend of roughly 5.0p a share, as per its stated policy of returning excess capital.

With their 52-week high looming right above, markets will need good reasons in order to bid the shares past that hurdle.

Thursday 30 August

IMS

WH Smith

INTERIMS

AFI Development, Arrow Global Group, ASA International Group , Chesnara, Churchill China, Eddie Stobart Logistics , Hunting, HSS Hire, IFG Group, Irish Continental Group Units, Total Produce

INTERIM EX-DIVIDEND DATE

Arbuthnot Banking Group, Ascential, British Smaller Companies VCT 2, Capital & Counties Properties , Centamin (DI), Charter Court Financial Services Group , Chemring Group, Elementis, Globaldata, Grafton Group Units, Greencore Group, Hammerson, Hochschild Mining, Hostelworld Group , InterContinental Hotels Group, JPMorgan American Inv Trust, Mincon Group , National Express Group, Northern Electricity Prf, Polypipe Group , Rights & Issues Inv Trust Income Shares, Robinson, Secure Trust Bank, St James's Place, Stock Spirits Group , Transgloble Energy Corporation NPV (DI), Ultra Electronics Holdings, Wood Group (John)

QUARTERLY EX-DIVIDEND DATE

Alpha Real Trust Ltd., Canadian General Investments Ltd.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Business Climate Indicator (EU) (10:00)

Consumer Confidence (EU) (10:00)

Continuing Claims (US) (13:30)

Economic Sentiment Indicator (EU) (10:00)

Industrial Confidence (EU) (10:00)

Initial Jobless Claims (US) (13:30)

Personal Consumption Expenditures (US) (13:30)

Personal Spending (US) (13:30)

Services Confidence (EU) (10:00)

Unemployment Rate (GER) (09:00)

Q2

AFI Development, EVS Broadcast Equipment SA

FINALS

Hays

EGMS

Lazard World Trust Fund, X5 Retail Group NV GDR (Reg S)

AGMS

Creightons, FIH Group , Oryx International Growth Fund Ltd., Sophos Group

UK ECONOMIC ANNOUNCEMENTS

Consumer Credit (09:30)

M4 Money Supply (09:30)

Mortgage Approvals (09:30)

FINAL DIVIDEND PAYMENT DATE

Blue Planet Investment Trust

FINAL EX-DIVIDEND DATE

600 Group, Auto Trader Group , Chagala Group Limited (DI), Henderson Smaller Companies Inv Trust, Safeland, Solid State, Walker Crips Group, XPS Pensions Group

Q1

Amigo Holdings