The UK benchmark index looks set to start the session in the red, tracking Asia lower, following soft data out of China, the world’s second largest economy. On the corporate front, Vodafone (LON:VOD) is scheduled to post its results this morning.
Downbeat start ahead
IG’s opening calls suggest that the FTSE 100 will open 0.25 percent in the red at 7,692 points. The blue-chip index is likely to take cues from Asia where shares have retreated this morning following downbeat data out of China.
“The markets appear to be taking a breather after their recent surge, awaiting fresh developments in matters such as U.S.-China trade issues and Washington’s upcoming summit with North Korea,” said Yoshinori Shigemi, global markets strategist at JP Morgan Asset Management, as quoted by Reuters.
In the US, however, stocks rose last night amid easing trade tensions between the US and China, while at home, the Footsie closed little changed yesterday, giving up 13.57 points to end the session 0.18 percent lower at 7,710.98, pressured by a fall in oil.
Investors have a lot to look forward to on the macroeconomic front this morning, including a flash estimate for Germany’s first-quarter gross domestic product (GDP) at 07:00 BST, to be followed by UK unemployment data at 09:30 BST. Germany’s economic sentiment ZEW index for May and a second estimate for the eurozone’s GDP data are bot due out at 10:00 BST. In the US, the nation’s retail sales for April will be announced at 13:30 BST.
Vodafone will post its full-year results this morning, following its €18.4-billion deal with Liberty Global announced last week. Other blue-chips reporting today include Land Securities (LON:LAND), easyJet (LON:EZJ) and Hargreaves Lansdown (LON:HL).