Tuesday preview: US CPI, Asos in the spotlight

The spotlight on Tuesday will be on a reading for US consumer prices in March.

General Retailers

4,552.31

17:10 07/11/24

-1.44%

-66.67

Consensus is for the annual rate of headline CPI inflation to pick up from 7.9% for February to 8.4% in March.

Although some forecasters expect that to mark the peak for CPI, the figures will underline that the Fed has its job cut out for it to rein inflation back in.

Against that backdrop, at 0700 GMT, the Office for National Statistics will release its UK employment report for February.

The figures are expected to reveal a still tight labour market that is pushing up on wages - and expected to continue doing so.

Nonetheless, growth in earnings "won't even come close to matching the impact of rising prices in the shops", says Michael Hewson, chief market analyst at CMC Markets UK.

Across the Channel, at 1000 GMT the ZEW institute will publish its closely-followed economic confidence index for Germany in April.

Also due out are final readings for German and Portuguese CPI in March

For fashion retailer Asos's first half results, UBS analyst Olivia Townsend was anticipating a 5.6% rise in revenues on a constant currency basis, versus the consensus forecast for an increase of 4.8%.

If looking at just the second quarter, then revenues at constant FX were seen climbing by 7%.

Adjusted profits before tax meanwhile were pegged at £11.5m (consensus: £17.2m).

Investors were also likely to be hoping for comments around any possible changes in consumer behaviour due to faster inflation, an update on its full-year guidance in view of lost sales in Ukraine and Russia and an update on its search for a new chief executive officer.

Indeed, its exposure to those two countries had seen the shares underperform the sector by around 8%.

Ukraine and Russia accounted for approximately 4% of the company's sales and 10% of its profit before tax.

Townsend also pointed out a range of investor concerns including "Asos's ability to navigate ongoing shipping disruption to Rest of the World markets, rising competition in the US and Europe and the defensiveness of the new long-term strategy".

Tuesday 12 April

INTERIMS

MJ Hudson Group NPV, Nanoco Group

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Consumer Price Index (GER) (07:00)

Consumer Price Index (US) (13:30)

ZEW Survey (EU) - Economic Sentiment (10:00)

ZEW Survey (GER) - Current Situation (10:00)

ZEW Survey (GER) - Economic Sentiment (10:00)

FINALS

Filta Group Holdings, JD Sports Fashion, Microlise Group, Northbridge Industrial Services

AGMS