The UK benchmark index looks set to open higher this morning, finding support in the US tax bill passed over the weekend. BT Group (LON:BT.A) will be in focus today amid pressure on its Openreach division’s ultra-fast broadband prices.
Upbeat start ahead
IG's opening calls suggest that the FTSE 100 will start the week 0.78 percent higher at 7,358 points. The blue-chip index looks poised for an upbeat start, following news that the US Senate passed a tax bill over the weekend. Stocks in the US, however, closed lower on Friday, after an ABC News report suggested that former national security adviser Michael Flynn was directed by President Donald Trump to talk to Russians.
Asian shares meanwhile have been subdued this morning with investors digesting the US tax bill.
“If you do see a US fiscal stimulus in 2018 all its likely to do is accelerate the need for further US policy tightening which indirectly could be negative for emerging markets,” said Chris Weston, Melbourne-based chief market strategist at IG, as quoted by Reuters.
In the UK, the FTSE 100 shed 26.18 points to end Friday’s session 0.36 percent in the red at 7,300.49, pressured by worries over Donald Trump’s presidency.
Today’s macroeconomic releases include the UK construction purchasing managers’ index for November, due out at 09:30 GMT. IG reports that the index is expected to have climbed to 51.1 last month, from 50.8. With the earnings season over, no blue-chips are scheduled to update the market on their performance this morning. In other news, The Telegraph reports that BT faces mounting pressure from regulators, rivals and its telecoms provider customers to cut the price of ultra-fast broadband services proposed by its network division Openreach.