The UK benchmark index looks set to start Wednesday’s session in the red after the US threatened more tariffs on Chinese imports. J Sainsbury (LON:SBRY) will be in focus in today’s session amid reports that it has lined up a new chairman to succeed David Tyler.
Index to open lower
IG’s opening calls suggest that the Footsie will start the session 0.52 percent lower at 7,652 points. The blue-chip index is likely to take cues from Asia, where shares have retreated this morning following news that the US administration would impose 10 percent tariffs on an extra $200 billion worth of Chinese imports.
“It looks like the US just took the scale of the trade frictions to another level,” Li Chenggang, assistant minister at China’s Commerce Ministry, commented at a forum in Beijing, as quoted by Reuters. In the US, stocks rose last night, with investors focusing on the start of the earnings season.
In the UK, the Footsie climbed marginally higher in the previous session, adding 4.05 points to close 0.05 percent higher at 7,692.04, with investors continuing to focus on the political turmoil following the resignations of Brexit Minister David Davis and Foreign Secretary Boris Johnson.
There are no major macroeconomic releases out of Europe to guide the market this morning. On the other side of the Atlantic, the US producer price index for June will be released at 13:30 BST, to be followed by Bank of Canada’s rate decision at 15:00 BST.
On the corporate front, investors will eye updates from Micro Focus (LON:MCRO), Burberry (LON:BRBY) and Barratt Developments (LON:BDEV). Sky News meanwhile reports that Sainsbury’s will unveil Martin Scicluna as the successor to long-serving chairman David Tyler.