FTSE 100 preview: Index poised for muted start as investors await tariffs

Lloyds offers £76 million to HBOS fraud victims so far

FTSE 100 preview: Index poised for muted start as investors await tariffs

The FTSE 100 looks set to start the session marginally lower, following a downbeat lead from Asia where investors are eyeing the upcoming wave of tariffs. Lloyds Banking Group (LON:LLOY) will be in focus amid the latest developments over the fraud at the Reading office of its HBOS unit.

Muted start on the cards

IG’s opening calls suggest that the Footsie will start Thursday’s session 0.06 percent lower at 7,569 points. The blue-chip index is likely to take cues from Asia where stocks have retreated on the back of the ongoing trade concerns, with US and China both set to impose tariffs tomorrow.

“Uncertainty over the tariffs’ impact on trade [has] led to a subdued mood in risk assets,” Weiliang Chang, a foreign exchange strategist at Mizuho Bank, said in a note, as quoted by CNBC. US markets were closed last night for Independence Day.

In the UK, the FTSE 100 closed marginally lower yesterday, shedding 20.20 points to end the session 0.27 percent lower at 7,573.09. Sainsbury’s (LON:SBRY) was the session’s biggest riser in percentage terms, gaining 2.95 percent to 328.00p after updating investors on its first-quarter performance.

Thursday’s agenda

There are no major macroeconomic releases out of Europe to guide the markets further this morning. On the other side of the Atlantic, the US ADP employment report for June is due out at 13:15 BST, to be followed by the nation’s non-manufacturing purchasing managers’ index for June at 15:00 BST. The minutes from the latest Federal Reserve meeting will be announced at 19:00 BST, after the UK market closes.

On the corporate front, investors will eye reports by Persimmon (LON:PSN) and Associated British Foods (LON:ABF). In other company news, Reuters reports that MPs have said that Lloyds has made compensation offers worth £76 million to victims of the fraud at its HBOS Reading unit.

Next (LON:NXT) is the only FTSE 100 company whose shares will be trading without the attraction of their latest dividend in today’s session, knocking 0.55 points off the blue-chip index according to Reuters’ calculations.

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