Tuesday preview: UK employment, Elementis in the spotlight

The market spotlight on Tuesday will be on the UK jobs market.

Data due out from the Office for National Statistics at 0700 GMT is expected to reveal a one tenth of a percentage point rise in the country's rate of unemployment for over the three months to January to 5.2%.

Ahead of the report, economists at Barclays Research said increased furlough numbers appeared to suggest that companies were drawing on the scheme, instead of letting staff go.

Average weekly earnings were also seen higher, both at the headline and core level, with the year-on-year rate of increase in the former expected to strengthen from 4.7% to 5.0%.

Nevertheless, Barclays cautioned clients that "compositional effects may still distort the headline numbers."

Stateside meanwhile, a reading on new home sales in February was scheduled for release at 1330 GMT, followed by a reading on the US's current account balance for the second quarter.

Across the Channel on the other hand, it was expected to be a lacklustre day in terms of economic data.

The only reports due out were concerning Dutch consumer confidence for March and Italian industrial orders in January.

For Elementis's second half results, UBS analyst Andrew Stott has penciled-in earnings before interest and taxes of $42m (consensus: $41m).

Net debt at year-end for the personal care and speciality chemicals business outfit was pegged to come in at $412m, against the company's own guidance for "under $415m".

According to the analyst, the scale of demand weakness during the second half in Elementis's Cosmetics business would be of special interest.

The recovery underway thus far in 2021 in its Coatings and Talc businesses would also be of interest, he said.

No second half dividend was likely however, Stott added.

Looking out to 2015, the analyst consensus was for EBIT of only $99.5m, versus UBS's own projection for $113m.

"The stock has performed well since extreme lows in 2020 but the possibility of ongoing balance sheet deleveraging and future margin recovery across the portfolio keeps us Buy-rated."

Tuesday 23 March

INTERIMS

Essensys , MJ Hudson Group NPV, YouGov

INTERIM DIVIDEND PAYMENT DATE

BHP Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Current Account (US) (12:30)

New Homes Sales (US) (14:00)

FINALS

Alliance Pharma, Arrow Global Group, Cambridge Cognition Holdings, DP Eurasia N.V. (DI) , Elementis, Energean , Ergomed , Etalon Group GDR (Reg S), H&T Group, Henry Boot, Judges Scientific, LongBoat Energy (Reg S), Loopup Group , Luceco , M. P. Evans Group, Mortgage Advice Bureau (Holdings) , Old Mutual Limited NPV (DI), Personal Group Holdings, The Pebble Group, Zotefoams

EGMS

UK Mortgages Limited

AGMS

Bankmuscat (S.A.O.G) GDR (Reg S), Blackrock North American Income Trust , Crest Nicholson Holdings, Standard Life Private Equity Trust, Wynnstay Group

UK ECONOMIC ANNOUNCEMENTS

Claimant Count Rate (07:00)

Unemployment Rate (07:00)

FINAL DIVIDEND PAYMENT DATE

Driver Group