Tuesday preview: UK Parliament, IQE in focus

Investors' attention will be trained on Parliament on Tuesday as MPs return from the summer recess with possibly as little as a week to try and head off the risk of a 'no deal' Brexit, be it through the legislative path or via a successful no-confidence vote against Boris Johnson.

MPs opposed to any chance of a disorderly withdrawal are expected to immediately ask the Speaker of the House for time to debate a bill to that effect - even as some analysts caution that such a move might play into the government's hands.

Commenting on the possible outcomes and implications of those efforts, Paul Dale at Capital Economics said: "Overall, by the middle of next week the chances of a delay to Brexit may have risen, an election may be just around the corner or a no deal may have become more likely.

"If neither a vote on legislation to delay Brexit or a vote of no confidence has happened before Parliament is suspended, the chances of a no deal Brexit would probably take a step up, resulting in gilt yields and the pound taking a further step down."

Also on Tuesday, a full hearing on MPs bid to seek an interdict of the PM's prorogation of Parliament in an Edinburgh court is scheduled for Tuesday with a decision possibly set to follow on the following day.

Stateside meanwhile, the focus will be on any fresh news regarding whether US-China trade talks will go ahead as planned in September.

The Institute for Supply Management's services sector Purchasing managers' Index is also due out, at 1500 BST.

Further afield, the Reserve Bank of Australia is due to announce its latest policy meeting overnight.

Among the companies set to update markets on Tuesday is semiconductor manufacturer IQE.

Deutsche Bank's Robert Sanders forecasts the company will post first half sales of £66.3m for a 9.6% drop in comparison to their year earlier level.

And together with a higher cost of sales, higher general and administrative expenses are expected to result in an adjusted operating margin of 1.5%, versus 10.4% 12 months before.

The company's adjusted profits before tax meanwhile are pegged at £1.0m in comparison to the year ago figure of £7.7m.

Tuesday 3 September

FINALS

Renalytix Ai (Reg S), Accrol Group Holdings, Craneware, Supermarket Income Reit, Mattioli Woods

INTERIMS

Gamma Communications, Johnson Service Group, IQE, Frenkel Topping Group, Restaurant Group, Highland Gold Mining Ltd., Dalata Hotel Group, Wentworth Resources NPV, Hydrogen Group, Michelmersh Brick Holdings, India Capital Growth Fund Ltd., Impact Healthcare Reit, STV Group

TRADING ANNOUNCEMENTS

Smith (DS)

AGMs

Severfield, Henderson Diversified Income Ltd., Monks Inv Trust, Zanaga Iron Ore Co. Ltd (DI), Marwyn Value Investors Limited, Smith (DS), Victoria

FINAL DIVIDEND PAYMENT DATE

Pennon Group

INTERIM DIVIDEND PAYMENT DATE

Ferrexpo

QUARTERLY EX-DIVIDEND DATE

Schlumberger

UK ECONOMIC ANNOUNCEMENTS

Retail Sales (00:01), PMI Construction (09:30)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Producer Price Index (EU) (10:00), ISM Prices Paid (US) (15:00), ISM Manufacturing (US) (15:00), Construction Spending (US) (15:00), Auto Sales (US) (20:30)