Thursday preview: EU Brexit summit, China CPI in the spotlight
All eyes will be on the result of the emergency European Union summit on Wednesday evening, with traders predicting a substantial move higher Sterling should a time frame for an extension to Article 50 be agreed.
According to John Goldie, FX Dealer at Argentex a "1%-1.5% is not unfeasible".
But that view was not without its caveats.
"While it is likely that a decent move higher for the pound will be the reaction on a longer extension, there are further implications that may make the move more subdued than many expect," Goldie said.
"A long extension allows time for an election to be called so while the Brexit “cliff-edge” risk will have been avoided, general election risk – potentially the most divided of elections in recent past – will replace it."
The above aside, the only significant indicator due for release was RICS's UK house price survey for March.
First thing Wednesday morning, investors will also be scanning the headlines for the latest reading on consumer prices in China, covering the month of March, which is due for release overnight.
Inflation will also be in focus in the States, with the Department of Labor scheduled to release a report on wholesale prices at 1330 BST, alongside the latest figures for weekly jobless claims in the US.
Hays is among the corporates set to update its shareholders on Thursday, with Numis's Steve Woolf anticipating a further slowdown in net few growth over the recruitment and human services group fiscal third quarter to 8% on a year-on-year basis, after an increase of 9% in the preceding three months.
According to the analyst, market conditions had "softened slightly" but the firm's focus on consultant productivity should allow for double-digit growth in the back half of the year.
Woolf also emphasised that companies in the UK were continuing to defer investment decisions.
In New Zealand however, whose construction sector was the group's biggest market, the analyst conceded that there was an ongoing slowdown.
"Elsewhere, we expect the strong growth in the US, Asia and EMEA ex-Germany to continue, benefiting from both additional headcount, and greater productivity from the existing consultant base."
For Ashmore's third quarter trading update meanwhile, Numis's David McCann had penciled-in assets under management of $80.0bn, net flows of -$0.7bn and and performance gains of $3.9bn.
The broker saw downside risks for the fund manager's net flows in calendar year 2019.
He anticipated a decline of -$4.3bn and told clients that at about $5bn the consensus was being "somewhat complacent and likely not factoring in the lag between weakening EM sentiment and Ashmore specific flows.
Nevertheless, "our negative recommendation is a short-term tactical call," he clarified.
"Long term we are fans of Ashmore – but not in the short term given the risks we see to both short-term valuation and forecast."
Thursday April 11
INTERIM DIVIDEND PAYMENT DATE
Craneware, Diageo, Trifast
INTERIM EX-DIVIDEND DATE
Barratt Developments, Begbies Traynor Group, Bioventix, Foresight Solar & Infrastructure VCT, Foresight VCT, Henderson EuroTrust, Kin and Carta , Northamber, Oxford Technology 4 Venture Capital Trust
QUARTERLY PAYMENT DATE
GlaxoSmithKline, Regional REIT Limited
QUARTERLY EX-DIVIDEND DATE
BlackRock Latin American Inv Trust, Diversified Gas & Oil, Ediston Property Investment Company, JPMorgan Asian Investment Trust, JPMorgan Japan Smaller Companies Trust, Merchants Trust, Middlefield Canadian Income PCC, Scottish Inv Trust, Yew Grove Reit
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Price Index (GER) (07:00)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
Producer Price Index (US) (13:30)
Corero Network Security, Hvivo, Trackwise Designs
Impact Healthcare Reit , Menhaden, Quilter
SPECIAL DIVIDEND PAYMENT DATE
Jupiter Fund Management
SPECIAL EX-DIVIDEND DATE
Billing Services Group Ltd., EIH Plc, Savills, SSP Group
Banco Santander S.A., Law Debenture Corp., Polar Capital Global Financials Trust, Smith & Nephew, UK Oil & Gas
UK ECONOMIC ANNOUNCEMENTS
RICS Housing Market Survey (00:01)
FINAL DIVIDEND PAYMENT DATE
Jupiter Fund Management
FINAL EX-DIVIDEND DATE
AIREA, Alpha Fx Group , Aviva, BBA Aviation, Belvoir Lettings, Capital Drilling Ltd. (DI), Charter Court Financial Services Group , Chesnara, Costain Group, Croda International, Dalata Hotel Group, EMIS Group, Equiniti Group , FBD Holdings, International Personal Finance, ITV, Johnson Service Group, JPMorgan American Inv Trust, JPMorgan US Smaller Co. Inv Tst, Kerry Group 'A' Shares, Merlin Entertainments , Miton Group, Mondi, Octopus Titan VCT , Paddy Power Betfair, Rentokil Initial, Rotork, Savills, Schroder Asian Total Return Investment Company , Smurfit Kappa Group, Standard Life Aberdeen, STV Group, Ultra Electronics Holdings, Unite Group, Urban Exposure