The UK benchmark index looks set to start the last trading day of the quarter on the front foot, boosted by a strong lead from the US. BAE Systems (LON:BA) will be in focus today after winning a major contract in Australia.
Index looking up
IG’s opening calls suggest that the Footsie will start the session 0.50 percent higher at 7,654 points. The blue-chip index is likely to take cues from the US where equities rebounded last night despite the ongoing trade tensions between the US and China. Asian shares have also advanced on the last trading day of the quarter.
“The consequences of U.S. monetary policy normalization, moderately higher inflation and US-China trade tensions top our list of worries, but do not change our broadly optimistic view on world growth,” Standard Chartered Global Chief Economist David Mann said in a note, as quoted by CNBC. “We are mindful, however, that the combination of worsening trade outcomes, higher oil prices and a hawkish Fed may dent confidence further in 2018 and beyond.”
In the UK, the FTSE 100 closed little changed yesterday, shedding 6.06 points to end the session 0.08 percent lower at 7,615.63. Shire (LON:SHP) was the session’s biggest riser in percentage terms, after a group of Takeda shareholders lost s battle to try to block the Japanese pharma maker’s takeover of the London-listed rare disease specialist.
Investors have a lot to look forward to on the macroeconomic front today, starting with German unemployment data for June, due out at 08:55 BST, to be followed by the final estimate for the UK’s first-quarter gross domestic product at 09:30 BST. IG reports that growth is expected to come in at 1.2 percent year-on-year and 0.1 percent quarter-on-quarter. The eurozone’s flash consumer price index for June is out at 10:00 BST, while over in the US, the nation’s personal income and spending data for May will be announced at 13:30 BST, to be followed by Chicago’s purchasing managers’ index for June at 14:45 BST.
In company news, BAE Systems has won a A$35-billion ($25.7 billion) contract with the Royal Australian Navy.