The UK benchmark index looks set to open marginally lower this morning, pressured by a downbeat lead from Asia, and ahead of an upcoming meeting between the US and Russia. Rolls-Royce Holdings (LON:RR) will be in focus today amid reports that it is looking into the flying taxi market.
FTSE 100 seen little changed
IG’s opening calls suggest that the Footsie will start the session 0.05 percent lower at 7,658 points. The blue-chip index looks set to start the week little changed, with investors eyeing a summit between US President Donald Trump and his Russian counterpart Vladimir Putin in Helsinki.
In the US, shares surged on Friday, with investor attention turning to the upcoming earnings season. In Asia, however, stocks have dipped this morning, pressured by data which showed that China’s economy growth had slowed slightly in the second quarter.
“I would be incredulous if China’s GDP growth could continue at the level it’s been historically,” Jim McCafferty, head of equity research, Asia ex-Japan at Nomura, told Reuters. So I think there’s always been an anticipation of some gradual slowdown, but the slowdown of the growth rate is probably less than the market really wants to believe.”
In the UK, the FTSE 100 added 10.54 points to end the session 0.14 percent higher at 7,661.87, finding support in a weaker sterling.
There are no major macroeconomic releases out of Europe to guide the market further this morning. In the US, the nation’s retail sales data for June and the Empire state manufacturing index for July will be unveiled at 13:30 BST.
In company news, Reuters reports that Rolls-Royce has designed a propulsion system for a flying taxi and is kicking off a search for partners to help develop a project it hopes could take to the skies as soon as early next decade. In other corporate developments, The Times has revealed that Unilever (LON:ULVR) is said to have begun talks with one of its most important shareholders as it seeks to win support for its plans to scrap its UK headquarters.