FTSE 100 preview: Index seen lower as trade war worries linger

Shire in focus after Takeda AGM

FTSE 100 preview: Index seen lower as trade war worries linger

The UK benchmark index looks set to open lower this morning, with trade war worries likely to continue to weigh on investor sentiment. Shire (LON:SHP) will be in focus today following Takeda Pharmaceutical’s annual general meeting earlier (AGM) today.

FTSE 100 to open lower

IG’s opening calls suggest that the Footsie will start trading 0.36 percent in the red at 7,594 points. The blue-chip index is likely to take cues from the US where shares dipped last night even as President Donald Trump signalled a softer approach to Chinese investment in US technology than previously feared. CNBC reports that a senior administration official had said that the government will rely on the newly strengthened Committee on Foreign Investment in the US to deal with concerns about foreign purchase of sensitive domestic technologies. In Asia, shares have fallen into the red this morning.

In the UK, the FTSE 100 rallied in the previous session, adding 83.77 points to close 1.11 percent higher at 7,621.69.

Thursday’s agenda

Today’s macroeconomic releases include Germany’s consumer confidence GfK index, scheduled to be released at 07:00 BST, to be followed by the eurozone business confidence index for June at 10:00 BST and Germany’s preliminary consumer price index for June at 13:00 BST. On the other side of the Atlantic, the final estimate for the US first-quarter gross domestic product will be announced at 13:30 BST.

In company news, Reuters reports that a group of Takeda shareholders trying to build support to block the $62 billion acquisition of Shire had failed to get a proposal passed at the drugmaker’s AGM.

Blue-chips, whose shares will be trading without the attraction of their latest dividend in today’s session, include British American Tobacco (LON:BATS), British Land (LON:BLND), Burberry (LON:BRBY), Coca-Cola HBC (LON:CCH) and International Consolidated Airlines Group (LON:IAG). Reuters’ calculations suggest that ex-divs will knock 6.18 points off the Footsie.

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