FTSE 100 preview: Muted start ahead after Trump speech

Tesco expected to reveal recovery continues

FTSE 100 preview: Muted start ahead after Trump speech

The UK benchmark index looks set to open marginally lower this morning, with Donald Trump’s speech yesterday disappointing investors. Tesco (LON:TSCO) will take the centre stage on the corporate front this morning, with Britain’s biggest supermarket scheduled to update investors on its third-quarter and Christmas performance.

IG’s opening calls suggest that the Footsie will start the session 0.04 percent lower at 7,287 points. Sentiment is expected to be subdued in morning trade, after Trump’s news conference yesterday contained no details on tax cuts and infrastructure spending, contrary to investor expectations.

“President-elect Trump’s first news conference since late July has left a veritable laundry list of questions unanswered for markets,” analysts at Westpac wrote, as quoted by Reuters. “The issue is that markets arguably priced in too much reflation without any solid policy detail.” US stocks, however, managed to close higher last night, while Asian shares have been mixed this morning.

The Footsie added 15.02 points to end the previous session 0.21 percent higher at 7,290.49, posting a higher close for the 12th consecutive session and marking the longest winning streak in the index’s history.

Investors have a lot to look forward to on the macroeconomic front this morning, with Germany’s annual gross domestic product for 2016 due out at 09:00 GMT, to be followed by Eurozone industrial production data for November at 10:00 GMT. The minutes from the latest European Central Bank meeting meanwhile are scheduled to be released at 12:30 GMT.

In corporate releases, Tesco is expected to reveal a rise in sales in the third quarter, adding to evidence that recovery at the company is continuing more than two years following the discovery of an accounting black hole. Other blue-chips reporting today include Marks & Spencer (LON:MKS), Barratt Developments (LON:BDEV) and Primark owner Associated British Foods (LON:ABF). There are no FTSE 100 companies going ex-dividend in today’s session.

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