The FTSE 100 looks set to open higher ahead of the upcoming long weekend, recouping some of the previous sessions’ losses, with investors shrugging off downbeat leads from the US and Asia after President Donald Trump cancelled the highly-anticipated North Korea summit. Lloyds Banking Group (LON:LLOY) will be in focus today following a shareholder rebellion against the lender’s remuneration report.
Steady start ahead
IG’s opening calls suggest that the Footsie will start the session 0.61 percent higher at 7,764 points. In the US, shares fell last night, as President Trump announced that next month’s summit with North Korea was cancelled.
“I think Trump got embarrassed and I think he’s trying to dial back expectations. It’s certainly disappointing to me, but I haven’t written [the meeting] totally off yet,” said Jack Ablin, chief investment officer at Cresset Wealth Advisors, as quoted by CNBC. Asian shares have tracked the US lower this morning.
In the UK, the FTSE 100 posted another hefty loss, shedding 71.70 points to close 0.92 percent lower at 7,716.74, pressured by a stronger pound and continued risk-off sentiment.
Today’s macroeconomic statements include Germany’s Ifo business climate index for May, due out at 09:00 BST, to be followed by the second estimate for the UK’s first-quarter gross domestic product at 09:30 BST. IG reports that growth is expected to have been 0.1 percent from 0.4 percent quarter-on-quarter, and 1.2 percent from 1.4 percent year-on-year. On the other side of the Atlantic, US durable goods orders for April are scheduled to be announced at 13:30 BST, to be followed by the final Michigan consumer confidence index for May at 15:00 BST.
On the corporate front, SSE (LON:SSE) will update investors on its performance this morning. In other news, more than a fifth of voters at Lloyds’ annual general meeting yesterday refused to back the lender’s remuneration report.