The UK benchmark index looks set to open higher this morning, recouping some of the hefty losses posted in the previous session, despite the ongoing trade war fears. Barclays (LON:BARC) will be in focus on the corporate front today, amid reports that it is moving jobs to Frankfurt ahead of Brexit.
FTSE 100 to open higher
According to IG’s opening calls, the Footsie will start the session 0.45 percent higher at 7,582 points. The blue-chip index is likely to take cues from the US where shares started the second half of the year in positive territory last night, despite the ongoing trade tensions between the US and China.
“Positive fundamentals are being offset, in the short term, by the fear of negative potential fall-out from the trade drama,” Tom Essaye, founder of The Sevens Report, told CNBC. In Asia, shares have fallen into the red this morning.
“It’s not clear yet if the trade row will derail the global economy as a whole but it’s already clear that it will harm Chinese companies,” said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank, as quoted by Reuters.
The UK started the new quarter on the back foot yesterday, giving up 89.08 points to close 1.17 percent lower at 7,547.85, with investors awaiting the US to impose tariffs on China later this week.
Today’s macroeconomic statements include the UK’s construction purchasing managers’ index, due out at 09:30 BST. IG reports that the index is forecast to have fallen to 52, from 52.2. Retail sales data for the eurozone for May will be announced at 10:00 BST.
In company news, Reuters reports that Barclays as started to shift between 40 and 50 investment banking jobs from London to Frankfurt in the run-up to the UK’s exit from the EU.