Tuesday preview: Services PMIs, Vodafone in the spotlight

(Sharecast News) - The market spotlight at the start of February will be on a slew of purchasing managers' surveys for manufacturing sector activity from across the globe.
At 0930 GMT, IHS Markit will publish its services sector Purchasing Managers Index for the UK in January. Consensus is for an unchanged reading versus December of 56.9.

Also scheduled for release are Nationwide's house price index for January and government consumer and mortgage lending data covering the month of December.

Factory PMIs are also scheduled to be published in the euro area and US, at 0900 GMT and 1500 GMT, respectively.

Economists expect the former to be unchanged from the prior month and a dip in the latter.

Further afield, South Korean export figures for the month of January are due out and rate-setters Down Under will announce their latest monetary policy decision.

On the corporate side of things, Vodafone is due to update shareholders on its fiscal third quarter performance.

According to UBS analyst Polo Tang, investors' focus will be on potential M&A activity involving the company, including for its tower unit.

"Specifically, we think investors will be seeking a reiteration that Vodafone does not intend to be an acquirer and will structure deals in a way that does not increase leverage," he added.

Investors were also expected to hone in on the company's expectations for the trajectory of service revenues in Europe and for capital expenditures.

The potential need to replace existing cable networks in Germany, as its competitors had done, was making some investors "wary", the analyst said.

Tang however believed Vodafone did not need to take a decision in the near-term.

Group service revenues are seen 2.1% higher, which would mark a slowdown from growth of 3.3% and 2.4% recorded over the first two quarters of the year.

UBS analyst Polo Tang meanwhile is expecting that the telecommunications outfit will reiterate its guidance for the full fiscal year for earnings before interest, taxes, depreciation and amortisation of €15.2-15.4bn, alongside free cash flow, excluding growth capital expenditures, in excess of €5.3bn.

Tuesday 1 February

FINALS

AJ Bell

INTERIMS

Joules Group, Fragrant Prosperity Holdings Limited (DI), NWF Group, Cordel Group

TRADING ANNOUNCEMENTS

Mears Group, Property Franchise Group, ICG Enterprise Trust, Eqtec (CDI), Elixirr International, Virgin Money UK, Spectral Md Holdings, Ltd (DI) (Reg S), Warpaint London, Plant Health Care, Mobile Tornado Group, XLMedia, Duke Royalty Limited, Joules Group, Gem Diamonds Ltd. (DI), Inspects Group, Kingswood Holdings Limited, Barr (A.G.), James Halstead

AGMs

Schroder Asia Pacific Fund

ANNUAL REPORT

Plant Health Care

DRILLING REPORT

Ariana Resources, Inspects Group

FINAL DIVIDEND PAYMENT DATE

Cardiff Property

INTERIM DIVIDEND PAYMENT DATE

F&C Investment Trust, Johnson Matthey, United Utilities Group

QUARTERLY PAYMENT DATE

Mercantile Investment Trust (The)

UK ECONOMIC ANNOUNCEMENT

Nationwide House Price Index (07:00)

Mortgage Approvals (09:30)

PMI Manufacturing (09:30)

Consumer Credit (09:30)

M4 Money Supply (09:30)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Retail Sales (GER) (07:00)

Unemployment Rate (GER) (08:55)

PMI Manufacturing (GER) (08:55)

PMI Manufacturing (EU) (09:00)

Unemployment Rate (EU) (10:00)

PMI Manufacturing (US) (14:45)

Construction Spending (US) (15:00)

ISM Manufacturing (US) (15:00)