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(Sharecast News) - Economic data is set to take a back seat on Wednesday, and while the corporate earnings calendar in London is relatively quiet, results from Compass and Burberry will be in focus.
Contract caterer Compass will report its results for the half year ended 31 March, with investors keen to see if the impressive 9.2% underlying sales growth reported for the first quarter continued into the second.
Despite the strong start, the company in February held on to guidance organic growth of 7.5% for the full year and underlying operating profit growth in the high single digits.
"With consensus forecasts already wandering into double-digit growth territory, there may be some disappointment if Compass doesn't serve up an upgrade alongside [the] half-year results," said Derren Nathan, head of equity analysis at Hargreaves Lansdown.
As for Burberry, the high-end luxury brand's results for the financial year ended 30 March will likely focus on the outlook statement - particularly around the potential impact that Donald Trump's trade tariffs will have on the bottom line, given the company's heavy exposure to the Chinese market.
"The financial year for the fashion house ended before President Trump unleashed his Liberation Day plan onto the world, and the China/US trade war ramped up," noted Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"Given that China has been the powerhouse for luxury brands, another knock to confidence in the vast country is likely to hurt Burberry, which had shown signs of turning around its sales performance in the Asia Pacific region."
Streeter also warned of the impact that the knock-on effects of the tariffs would have on prices for consumers in the US. "The American market [...] had been a brighter spot for Burberry, with like-for-like revenue rising 4% at the last count, so a knock in confidence will be a set-back," Streeter said.
A host of corporate earnings are also due from blue chips across Europe, including ABN Amro, Alstom, Daimler Truck, E.ON, Hapag-Lloyd, Telefonica and TUI Group.