Wednesday preview: US-China CPI, Boohoo in focus

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Sharecast News | 11 Jun, 2019

The market spotlight in the middle of the week will shift to inflation on both sides of the Pacific, with consumer price data for the month of May due out in China and the US.

Fortunately for central banks around the world, if economists' forecasts pan out, inflation is expected to have remained relatively steady in both jurisdictions, at least outside of Chinese manufactured goods.

Headline CPI in China was seen accelerating from 2.5% in April to 2.7% for May, albeit on the back of higher food and furit prices.

Producer prices on the other hand were seen retreating, with the year-on-year rate of increase seen dropping from 0.9% to 0.5%.

In the States meanwhile, economists at Barclays Research expected the year-on-year rate of increase in headline CPI to dip from the 2.0% pace observed in April to 1.8% for May, but core CPI was seen unchanged at 2.1%.

More important, volatility in crude oil prices notwithstanding, core CPI was seen by Barclays ending 2019 at 2.2%.

Boohoo is among the handful of retailers that are set to update shareholders on Wednesday.

For the online fashion retailer's first quarter trading update, Numis's Simon Bowler is forecasting a 38% jump in sales.

At the start of the quarter, Boohoo indicated that sales momentum had continued at a similar pace to that seen over the previous three-month stretch, when they rose by 50%.

Bowler conceded he was being conservative and that there were upside risks to his estimates.

Indeed, consensus had already penciled-in a full year outcome for topline growth which was slightly ahead of management's projection for an increase of 25-30%.

"Nonetheless, given it is only 1Q and that management will likely want to leave room for forecast upgrades through the year, any formal change to guidance aren central case at this stage."

Wednesday June 12

INTERIMS

PCF Group

INTERIM DIVIDEND PAYMENT DATE

British Smaller Companies VCT, Diploma

QUARTERLY PAYMENT DATE

Tritax Eurobox (EUR), Tritax Eurobox (GBP)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (US) (13:30)

Crude Oil Inventories (US) (15:30)

MBA Mortgage Applications (US) (12:00)

FINALS

Castings, Elektron Technology, Enteq Upstream, Norcros, Park Group, Ramsdens Holdings , Ramsdens Holdings

SPECIAL DIVIDEND PAYMENT DATE

Konami Holdings Corporation

SPECIAL EX-DIVIDEND DATE

Randall & Quilter Investment Holdings (DI)

AGMS

Aminex, Anexo Group , Christie Group, Filta Group Holdings, GAN, Hellenic Telecom Industries SA ADS, London & Associated Properties, Plant Health Care, Randall & Quilter Investment Holdings (DI), Slingsby H.C, Steppe Cement Ltd, Ted Baker, Velocys plc, Walcom Group (DI), Witan Pacific Inv Trust

FINAL DIVIDEND PAYMENT DATE

BlackRock Smaller Companies Trust, Compagnie de St-Gobain SA, Hiscox Limited (DI), Hochschild Mining, Konami Holdings Corporation, Share plc

Q1

Summit Therapeutics

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