Wednesday preview: Fed's Powell in the spotlight

updated: 27 November 2018 at 3:55pm Author: Alexander Bueso

(Sharecast News) - Barring surprises, the spotlight on Wednesday will continue to be on the US central bank, as Federal Reserve chief, Jerome Powell, speaks to the Economic Club of New York.
Although Powell is not scheduled to begin talking until just after the market close in London, at 1700 GMT, his remarks may heavily influence trading over the next few weeks.

To take note of nevertheless, he has come under criticism from some corners for having allegedly "blinked" when faced with volatility in global financial markets.

Readings are also scheduled on US foreign trade for October, third quarter gross domestic product and new home sales, also for last month.

On the corporate side of things, Senior and Brewin Dolphin are both scheduled to update investors at the middle of the week.

For the former, Numis analyst, David Larkam, said the advance engineering specialist's large exposure to aerospace and military meant trading was likely to have been steady since its last interims.

The market for regional jets was more erratic, but deliveries of the C-series appeared to be on track, he said, while the Flexonics unit was likely to be strong outside of passenger cars, which was heavily exposed to Europe.

Nevertheless, Larkam added: "With an upgrade unlikely and other engineers even lower rated expect the shares to mark time unless management can deliver more solid contract news."

For Brewin Dolphin, Numis's Marcus Barnard was projecting full-year revenues and profits before tax of £331.7m and £79.1m, respectively, versus the consensus at £327.0m and £77.5m.

If Barnard is correct, then Brewin's top-line grew by 9% and the bottom line by 13%, with net margins seen improving by 80 basis points to 23.8%.

The dividend is seen rising 10% to 15.0p.

Wednesday November 28

INTERIMS

Findel, Grafenia , LondonMetric Property, RPC Group, Telford Homes

INTERIM DIVIDEND PAYMENT DATE

William Hill

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Crude Oil Inventories (US) (15:30)

GDP (Preliminary) (US) (13:30)

GFK Consumer Confidence (GER) (12:00)

GFK Consumer Confidence (GER) (07:00)

M3 Money Supply (EU) (09:00)

MBA Mortgage Applications (US) (12:00)

New Homes Sales (US) (14:00)

GMS

Communisis, Restaurant Group

FINALS

Brewin Dolphin Holdings, On The Beach Group , Ten Lifestyle Group

EGMS

Arcontech Group

AGMS

Arc Minerals Limited NPV (DI), BATM Advanced Communications Ltd., Croma Security Solutions Group, Harvest Minerals Limited (DI), JPMorgan Smaller Companies Inv Trust, PRS Reit (The) , Range Resources Ltd. (DI), Revolution Bars Group, Target Healthcare Reit Ltd, Thor Mining

TRADING ANNOUNCEMENTS

Jadestone Energy Inc NPV (DI), Senior

UK ECONOMIC ANNOUNCEMENTS

BRC Shop Price Index (00:01)