Tuesday preview: Services PMIs, Ashtead in focus

Financial markets are likely to focus on the US ISM's services sector Purchasing Managers Index for February.

Given that consumption accounts for the bulk of US economic activity, it is one of the most closely-followed economic reports published in the States each month.

Despite recent weak prints for monthly retail sales and personal consumption expenditures, expectations are for the ISM gauge to move higher, from a reading of 56.7 for January to 57.2 in February.

That report from the ISM will be preceded by an equivalent survey for the UK, which some economists believe is set to print below the consensus forecast for a reading of 50.l, reflecting increased caution on the part of businesses ahead of Brexit.

However, apparent progress recently in reducing the risk of a 'no deal' withdrawal may have acted as an offset ahead of the current 29 March date for the UK's exit.

In the background, and ahead of the 12 March vote scheduled in Parliament, Brexit Secretary Stephen Barclay and Attorney General Geoffery Cox are due to travel to Brussels for negotiations with the European Union's Michel Barnier about the legal interpretation of the Irish backstop.

Definitive readings on services sector PMIs in the euro area covering the same month, which are due out half an hour before, may also influence investor sentiment throughout the session, should they edge past forecasts.

Further afield, China's National People's Congress is due to kick-off on Tuesday and policymakers at the Reserve Bank of Australia are set to meet to decide on interest rates.

Among the corporate names scheduled to update markets is US-exposed Ashtead, which is due to publish its third quarter financials.

Steve Woolf at Numis estimates the equipment rental company will post a 22% jump in pre-tax profits to reach £250m, alongside a "modest" improvement in operating (EBITDA) margins, although the latter will be limited by the company's continued expansion and investmens in infrastructure.

Significantly, Woolf did not anticipate that the company would flag any change in trading conditions in the US construction space, highlighting how the company's business was now more cyclical than during the previous downturn.

Long-term infrastructure now accounted for roughly a third of its end-market exposure, up from about 15% at the peak of the last cycle.

"We remain positive on the shares, which we believe look oversold."

Tuesday March 05

INTERIMS

Ashtead Group, Craneware, Netcall

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

ISM Non-Manufacturing (US) (15:00)

New Homes Sales (US) (14:00)

PMI Composite (EU) (08:00)

PMI Composite (GER) (08:30)

PMI Composite (US) (14:45)

PMI Services (EU) (08:00)

PMI Services (GER) (08:55)

PMI Services (US) (14:45)

Retail Sales (EU) (10:00)

Retail Sales (GER) (07:00)

Q3

Ashtead Group

GMS

Range Resources Ltd. (DI)

FINALS

4Imprint Group, Apax Global Alpha Limited , BioPharma Credit , Direct Line Insurance Group, e-Therapeutics, Getbusy, GVC Holdings, Harworth Group, Huntsworth, Ibstock , Intertek Group, LSL Property Services, MPAC Group, Science Group

ANNUAL REPORT

Apax Global Alpha Limited

AGMS

Blackrock North American Income Trust , CareTech Holding, Ecofin Global Utilities and Infrastructure Trust , Schroder European Real Estate Investment Trust

UK ECONOMIC ANNOUNCEMENTS

PMI Services (08:30)

FINAL DIVIDEND PAYMENT DATE

Nexus Infrastructure