The UK benchmark index looks set to open lower this morning, giving up some of the previous sessions’ gains, with investors uneasy over the tariffs debate in the US. On the corporate front, investors will be eyeing results by Rolls-Royce Holdings (LON:RR).
Index to open lower
IG’s opening calls suggest that the FTSE 100 will start the session 0.69 percent lower at 7,097 points. Sentiment is likely to be subdued in today’s trading amid worries that US President Donald Trump will move forward with protectionist tariffs and risk a trade war. US shares meanwhile rose last night even as White House economic adviser Gary Cohn said that he was leaving.
“If [Cohn] leaves it’s a big deal because that means the ‘America First’ people are taking over,” said Larry McDonald, head of the US macro strategies at ACG Analytics and editor of The Bear Traps Report, as quoted by CNBC. Asian shares meanwhile have been subdued this morning.
At home, the Footsie rose yesterday, adding 30.77 points to end the session 0.43 percent higher at 7,146.75, with investors digesting corporate news. Smurfit Kappa (LON:SKG) lent support to the blue-chip index, with the shares soaring on the back of an unsolicited bid by International Paper.
Today’s macroeconomic statements include the third estimate for the eurozone’s fourth-quarter gross domestic product, due out at 10:00 GMT. On the other side of the Atlantic, the US ADP unemployment report for February is scheduled to be released at 13:15 GMT, to be followed by Bank of Canada’s rate decision at 15:00 GMT.
In company updates, Rolls-Royce is scheduled to post its full-year results this morning and analysts expect a rise in revenue and profits.