FTSE 100 preview: Index looking up after G7 summit

Rolls-Royce to slash 4,000 jobs

FTSE 100 preview: Index looking up after G7 summit

The UK benchmark index looks set to start the week on the front foot, following the Group of Seven summit last week, and with investors eyeing a meeting between the US and North Korea. Rolls-Royce Holdings (LON:RR) will be in focus on the corporate front amid plans to slash 4,000 jobs as it continues with restructuring under chief executive Warren East.

Index looking up

IG’s opening calls suggest that the FTSE 100 will start the session 0.15 percent higher at 7,693 points. The blue-chip index is likely to take cues from Asia, where shares have advanced even as US President Donald Trump backed out of a joint G7 communique over the weekend.

“What took place at the G7 weekend was within the scope of earlier expectations. And while the countries disagreed on trade, they did seem to show a unified front on the North Korean issue, so there is also a positive element from the G7 affecting risk sentiment,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, as quoted by Reuters.

In the US, shares rose on Friday, with gains staying capped amid trade tensions. At home, the Footsie was little changed in the previous session, giving up 23.33 points to close 0.30 percent lower at 7,681.07, pressured by trade war worries and prospects for tighter monetary policy by the European Central Bank.

Monday’s agenda

Today’s macroeconomic statements include the UK’s trade balance, industrial and manufacturing production data for April, due out at 09:30 BST. IG reports that the country’s trade deficit is expected to have widened to £3.6 billion.

In company news, The Sunday Times reports that Rolls-Royce is set to axe more than 4,000 jobs this week as the aero-engine maker tries to slash costs and boost profits.

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