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Wednesday preview: Global services, DS Smith in focus

Financial markets’ focus in the middle of the week will be on global services sector activity with survey results due out in all the main geographical areas.

In the UK, IHS Markit’s services Purchasing Managers’ Index is expected to be confirmed at a reading of 49.7 for February.

While consistent with an overall contraction in the sector, it would be far better than January’s reading of 39.5.

Stateside however the Institute of Supply Management’s services PMI is seen coming in at 58.7, which would be unchanged from January, and still firmly pointing to a solid pace of activity.

Across the Channel meanwhile, investors will also be keeping tabs on a spate of speeches from top European Central Bank officials, starting from 1300 GMT.

For DS Smith’s trading update, UBS’s Mikael Doepel anticipates that the international packaging firm will guide towards higher than expected volumes, although higher OCC prices were likely to be a drag.

Indeed, read across from rival Smurfit Kappa’s fourth quarter update pointed to upside risks for DS Smith’s latest quarter, with the analysts consensus having penciled-in earnings before interest, taxes and amortisation of £508m (consensus: £512m).

The supportive volumes environment in particular should also drive upwards estimates revisions from the current consensus estimate for DS Smith’s full-year 2021/22 EBITA of 595m, the analyst said, whereas Doepel was at £622m.

Wednesday 3 March

FINALS

Avast, Getbusy, Persimmon, Polymetal International, Pagegroup, Vivo Energy, Nichols, Allergy Therapeutics

TRADING ANNOUNCEMENTS

Biffa

AGMs

Gunsynd, Schroder European Real Estate Investment Trust

UK ECONOMIC ANNOUNCEMENTS

BRC Shop Price Index (00:01)

PMI Services (09:30)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

PMI Services (GER) (08:55)

PMI Composite (GER) (08:55)

PMI Services (EU) (09:00)

PMI Composite (EU) (09:00)

Producer Price Index (EU) (10:00)

MBA Mortgage Applications (US) (12:00)

PMI Composite (US) (14:45)

PMI Services (US) (14:45)

ISM Services (US) (15:00)

ISM Prices Paid (US) (15:00)

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