Wednesday preview: Services PMIs, Sainsbury in focus

The focus on Wednesday will shift towards the services sector, both in the UK and across the channel.

IHS Markit's services sector Purchasing Managers's Index will be released at 0930 BST, with markets keen to get a better sense on just how well, or not, this side of the British economy is holding up.

Equivalent data for the euro area is set to be published a half hour earlier.

Nevertheless, all in all, and with markets Stateside due to remain closed in observance of 4 July, trading conditions in financial markets on Wednesday are likely to remain rather muted.

On the corporate side of things, Sainsbury is set to publish its first quarter figures and if the latest data from Kantar Worldpanel covering the 12 weeks to 17 June are anything to go by, the grocer's latest update may prove a bit downbeat.

To take note of, Kantar's data does not encompass the Argos business and sales may also have gotten a boost from the World Cup.

Nonetheless, over the latest 12-week stretch Sainsbury's sales were down by 0.2% and its overall share of the market slipped by 0.4 percentage points to 15.6%, Kantar reported on 26 June.

Writing to clients three days later, Deutsche Bank's Charlie Muir-Sands predicted the company's sales in the quarter ending on 30 June would rise by 1.1% when fuel is excluded, with like-for-like sales up by 0.8%.

Unfortunately, according to Muir no "material comment" was likely from management on the ongoing Competition and Markets Authority's review of its proposed tie-up with Asda.

The CMA's decision was not expected until around mid-2019.

Wednesday July 04

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

MBA Mortgage Applications (US) (12:00)

PMI Composite (EU) (10:00)

PMI Composite (GER) (08:55)

PMI Services (EU) (10:00)

PMI Services (GER) (08:55)

FINALS

Artemis Alpha Trust

AGMS

Arricano Real Estate (DI), Carador Income Fund USD Shares, Distil, Mckay Securities, Mountfield Group, NewRiver REIT, Northern 3 VCT, Oakley Capital Investments Ltd. (DI), Obtala Limited, OptiBiotix Health, TwentyFour Select Monthly Income Fund Limited

TRADING ANNOUNCEMENTS

Mattioli Woods, Staffline Group, Topps Tiles, Walcom Group (DI)

UK ECONOMIC ANNOUNCEMENTS

BRC Shop Price Index (00:01)

PMI Services (09:30)

FINAL DIVIDEND PAYMENT DATE

Air China Ltd., Pacific Assets Trust, Tandem Group, Whitbread

FINAL EX-DIVIDEND DATE

Zhejiang Expressway Co 'H' Shares

Sainsbury (J)