FTSE 100 preview: Index seen lower amid subdued global sentiment

Rio Tinto to offload stake in copper project

FTSE 100 preview: Index seen lower amid subdued global sentiment

The UK benchmark index looks set to open lower this morning, tracking the US and Asia lower. On the corporate front, Rio Tinto (LON:RIO) is expected to offload a stake in a giant copper project.

Downbeat start ahead

IG’s opening calls suggest that the Footsie will start the session 0.53 percent in the red at 7.289 points. The blue-chip index is likely to take cues from the US where shares closed lower last night, pressured by a fall in the tech sector. The decline comes after the Senate passed a key tax bill over the weekend, which propped up global sentiment in the previous sessions.

“It seems like since we’ve entered December, there has been some reallocation in the market,” said Daniel Deming, managing director at KKM Financial, as quoted by CNBC. “There seems to be a lot of churning underneath of what is a pretty calm surface.” Asian shares meanwhile have tracked the US lower, further pressured by a drop in copper prices.

At home, the Footsie shed 11.47 points to end the session 0.16 percent lower at 7,327.50, giving up earlier gains as sterling recovered, boosted by optimism about a Brexit deal. Blue-chip supermarkets meanwhile provided support to the index as Goldman Sachs turned bullish on Tesco (LON:TSCO).

Quiet day on the cards

There are no major macroeconomic releases out of Europe to guide the market this morning. On the other side of the Atlantic, the Bank of Canada rate decision is scheduled to be announced at 15:00 GMT. In company news, The Times reports that the Indonesian government plans to buy Rio Tinto out of its stake in the world’s second largest copper mine. Hammerson (LON:HMSO) and Intu Properties (LON:INTU) meanwhile have agreed an all-share deal which will see Hammerson acquire the entire issued and to be issued share capital of Intu. 

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