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Wednesday preview: US services PMIs, Taylor Wimpey in focus

By Alexander Bueso

Investors’ focus in the middle of the week, leaving geopolitics aside for the moment, will be on a raft of survey readings for services sector activity on both sides of the Pond.
Chief among those surveys will be the US Institute for Supply Management’s Purchasing Managers’ Index for the sector, at 1500 BST, with analysts anticipating that it will not weaken as markedly as a rival preliminary PMI from S&P Global released on 22 July.

Consensus is for the ISM measure to slip from 55.3 to 53.9. S&P Global will also release a final reading for its own gauge, albeit 15 minutes before the ISM.

Back in the UK, S&P Global is expected to confirm preliminary readings for its own services and so-called composite PMI for that same month of 53.3 and 52.8, respectively.

Across the Channel, final readings for the same survey compiler’s services PMIs for the euro area’s largest economies will be released shortly after the start of trading.

Also due out are reports for wholesale prices and retail sales in the single-currency bloc, but for the month of June, both at 1000 BST.

In the background, financial markets will also be keeping a close eye on the headlines around China and Taiwan.

For builders’ merchant Taylor Wimpey’s first half numbers, UBS analyst Marcus Cole has penciled in a 10% decline in sales to £1.98bn, leaving him well below consensus at £2.11bn.

Operating profit margins however were seen improving from 19.20% during the year ago half to 19.90%, helping to limit the decline in profits before tax, before exceptionals, to a 6% drop to reach £386m.

Cole’s estimate for the company’s bottom line was also below consensus with the latter anticipating £407m of profits.

“Key focus will be on recent demand trends, supply constraints (particularly planning) and outlook,” the analyst said.

“[…] We think there could be caution on the 2023 volume outlook (UBSE -5%/VA consensus +6.5%) due to the weakening economy, affordability constraints and planning delays.”

Wednesday 3 August

FINALS

Van Elle Holdings

INTERIMS

LSL Property Services, Taylor Wimpey, Ferrexpo, Endeavour Mining, IP Group

Q2

Endeavour Mining

AGMs

D4T4 Solutions, Riverfort Global Opportunities, Scirocco Energy, Block Energy, Sequoia Economic Infrastructure Income Fund Limited, Molten Ventures, Edenville Energy, JZ Capital Partners Ltd

FINAL DIVIDEND PAYMENT DATE

GB Group

SPECIAL DIVIDEND PAYMENT DATE

SLF Realisation Fund Limited NPV, SLF Realisation Fund Limited C Shs NPV

UK ECONOMIC ANNOUNCEMENTS

PMI Composite (10:00)

PMI Services (10:00)

INTERNATIONAL ECONOMIC ANNOPUNCEMENTS

PMI Services (GER) (08:55)

PMI Composite (GER) (08:55)

PMI Composite (EU) (09:00)

PMI Services (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 Prices Paid (US) (15:00)

ISM Services (US) (15:00)

Factory Orders (US) (15:00)

Crude Oil Inventories (US) (15:30)

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