Wednesday preview: UK Parliament, CMC Markets in focus

updated: 2 April 2019 at 2:57pm Author: Alexander Bueso

(Sharecast News) - All eyes on Wednesday will be firmly on what many investors will likely be hoping is the last stage of the current phase of the UK's withdrawal from the European Union.
As of the market close on Tuesday, expectations were that the Prime Minister would put her Brexit deal to MPs for their approval, for a fourth time, at 1130 BST, with lawmakers set to table their own bill, shortly afterwards, at 1300 BST, aimed at preventing a 'no-deal' result.

If approved, the new law would call on Theresa May to ask the EU for another extension to Article 50 which, ironically, might win her the backing of more Tory MPs.

In parallel, investors would likely do well to monitor the headlines for any fresh news pertaining to the latest round of US-China trade talks that is set to kick-off later in the day, when Chinese vicepremier, Liu He, arrives in Washington.

Against that backdrop, investors will be waiting on services sector Purchasing Managers Indices in the euro area and UK, at 0900 BST and 0930 BST, respectively.

Stateside, consultancy ADP will publish its monthly private sector payrolls report at 1315 BST, followed by the ISM's factory sector PMI at 1500 BST.

For CMC Markets's pre-close trading update, Numis analyst Marcus Barnard is looking for the firm to either confirm or narrow its downwardly-revised guidance, following its profit warning on 22 February, for CFD and spreadbetting revenues to be down by between roughly 25.0-35.0% versus the year ago period.

On the back of that warning, Barnard lowered his forecast for the spreadbetter's 2019 net operating income by 6.3% to $148.3m and that for profits before tax by 23% to £22.0m.

On a more positive note, the analyst believed that CMC might have good news to deliver on its stockbroking partnership with ANZ Bank in Australia.

Despite that, Barnard told clients: "We continue to see risks to the downside, particularly as the retail client base declines."

Wednesday April 03

INTERIMS

Applied Graphene Materials , Gattaca

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)

ISM Non-Manufacturing (US) (15:00)

MBA Mortgage Applications (US) (12:00)

PMI Composite (EU) (09:00)

PMI Composite (GER) (08:30)

PMI Composite (US) (14:45)

PMI Services (EU) (09:00)

PMI Services (GER) (08:55)

PMI Services (US) (14:45)

FINALS

AA , JTC, Minds + Machines Group Limited (DI), Shield Therapeutics, Urban Exposure

EGMS

Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs

AGMS

Athelney Trust, McColl's Retail Group

TRADING ANNOUNCEMENTS

CMC Markets, Topps Tiles

UK ECONOMIC ANNOUNCEMENTS

PMI Services (09:30)