FTSE 100 preview: Index to start Friday marginally lower after downbeat leads

Majority of voters reject Royal Mail’s pay report

FTSE 100 preview: Index to start Friday marginally lower after downbeat leads

The UK benchmark index looks poised to start the last trading day of the week in negative territory, pressured by downbeat leads from the US and Asia. Royal Mail Group (LON:RMG) will return into focus following its annual general meeting (AGM) yesterday which saw a shareholder revolt against the postal operator’s pay report.

FTSE 100 seen lower

IG’s opening calls suggest that the index will start the session 0.02 percent lower at 7,682 points. The blue-chip index is likely to take cues from the US where shares fell last night after President Donald Trump said in an exclusive interview with CNBC’s Joe Kernen that he was not thrilled that the Federal Reserve was raising rates.

“I think the market will ignore it because (Fed Chairman Jerome) Powell will ignore it,” said Maris Ogg, president at Tower Bridge Advisors, as quoted by CNBC. “He’s a real estate guy […] he’s going to think rates going up are a bad thing no matter what.” Asian shares have tracked the US lower this morning.

In the UK, the Footsie inched marginally higher in the previous session, adding 7.69 points to end the session 0.10 percent higher at 7,683.97, with investors focusing on results. Unilever (LON:ULVR) was the session’s biggest riser in percentage terms, gaining 3.03 percent to 4,330.50p despite reporting a dip in half-year turnover.

Friday’s agenda

There are no major macroeconomic statements out of Europe to provide further direction to the market this morning. On the other side of the Atlantic, Canada’s consumer price index for June will be unveiled at 13:30 BST.

In company news, more than 70 percent of voters rejected Royal Mail’s remuneration report at the group’s AGM yesterday. The Times notes that the move marks one of the biggest pay revolts at a British FTSE 100 company.

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