The UK benchmark index looks set to open little changed this morning, pausing after the previous session’s rally which saw the FTSE 100 rise to record highs. J Sainsbury (LON:SBRY) will be in focus today amid reports that it is facing fresh scrutiny over its tie-up with Asda.
Muted start ahead
IG’s opening calls suggest that the Footsie will start the session 0.01 percent lower at 7,858 points. The blue-chip index is likely to shrug off an upbeat lead from the US, where shares rallied last night, following news that the trade war between the US and China was ‘on hold’.
“This should offer investors some relief over trade concerns, said Bruce Bittles,” chief investment strategist at Baird, told CNBC. “However, we expect that trading jitters will continue as the US still has plans to apply steel and aluminium tariffs on the European Union by month-end.” In Asia, shares have been subdued this morning.
“We are seeing US. dollar strength and that is causing money to flow out from emerging markets to the US There is some sort of risk aversion going on,” said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management, as quoted by Reuters.
At home, the Footsie rallied in the previous session, adding 80.38 points to close 1.03 percent higher at 7,859.17, with investors cheering the easing of tensions between the US and China.
There are no major macroeconomic releases to guide the market this morning, and no FTSE 100 companies are scheduled to update investors on their performance. In other news, The Times reports that is facing fresh scrutiny of its merger with Asda with more than 100 MPs having signed a letter criticising changes to the company’s staff pay that threaten to leave some workers more than £3,000 a year worse off.