Tuesday preview: US factory gate prices, Ashtead in focus

Brexit headlines aside, the spotlight will be on the latest wholesale price data in the States, referencing the month of November.

Financial markets will be looking to see to what extent and at what speed the recent drop in oil prices is feeding into producer prices, with a reading on consumer prices set to follow the next day.

Across the Channel meantime, all eyes will be on the ZEW institute's closely-followed economic confidence gauge for Germany covering the month of December.

On the corporate front, Ashtead is among the FTSE 350 firms that are set to update financial markets on Tuesday.

Analysts at UBS expect the rental equipment company, which is heavily exposed to the US market, to report a slowdown in volume growth from the 20% pace observed over the last quarter of its 2018 financial year to 10% for the second quarter of the current year, albeit due in part to unfavourable comparators versus the prior year, when it benefited from hurriance-related work.

Nevertheless, while management was expected to sound a still confident note, UBS's Rory McKenzie was projecting a slowdown in organic volume growth and saw risks that the underlying rental rate had in fact weakened, which he said might worry investors.

US growth capex guidance was seen unchanged at between $850-$950m, implying a strong performance at the company's Sunbelt unit, McKenzie said.

"Given Ashtead's execution and scope for market share gains we don’t expect any change to expansion plans despite stock market volatility."

For translation and intellectual property specialist RWS, Numis's James Beard forecasts second half profits before tax of £61.6m for earnings per share of 17.4p.

Beard believed the positive performance of the firm's Moravia and intellectual property business had offset a weaker half in Life Sciences, while net debt was seen at about £66.0m.

"On an underlying basis, the business remains capital light and highly cash generative, which should enable management to continue making value-enhancing acquisitions across the language services space.

"This, combined with the organic opportunity that exists across each of the three divisions, helps to underpin the Group 25x cal-19E PE rating."

Tuesday 11 December

INTERIMS

Ashtead Group, Carpetright, ECO Animal Health Group, Shearwater Group

INTERIM DIVIDEND PAYMENT DATE

Spire Healthcare Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Producer Price Index (US) (13:30)

ZEW Survey (EU) - Economic Sentiment (10:00)

ZEW Survey (GER) - Current Situation (10:00)

ZEW Survey (GER) - Economic Sentiment (10:00)

Q2

Ashtead Group

GMS

RM2 International S.A. (DI)

FINALS

Driver Group, MedicX Fund Ltd., MedicX Fund Ltd., Oxford Biodynamics , RWS Holdings, Zytronic

AGMS

John Lewis of Hungerford, Lok'n Store Group, Mind Gym, Reabold Resources, Shore Capital Group Ltd.

UK ECONOMIC ANNOUNCEMENTS

Claimant Count Rate (09:30)