The UK benchmark index looks set to start the new week on the back foot, following the latest comments by US President Donald Trump which are weighing on global market sentiment. GlaxoSmithKline (LON:GSK) will be in focus today ahead of a strategic update later in the week.
FTSE 100 to open lower
IG’s opening calls suggest that the index will start the session 0.36 percent lower at 7,652 points. In the US, shares closed little changed on Friday, with upbeat earnings helping offset threats made by President Donald Trump to increase tariffs on China.
“That’s going to reignite the trade-war fears,” said Peter Cardillo, chief market economist at Spartan Capital Securities, as quoted by CNBC. “That can only complicate things in the market.” Asian shares have slipped into the red this morning.
“Trade tensions are likely to remain in the headlines as [European Commission President] Juncker meets President Trump in Washington to discuss potential US tariffs on European autos,” asset manager Insight Investment, which is owned by BNY Mellon, said in a note, as quoted by Reuters.
At home, the Footsie closed little changed on Friday, giving up 5.18 points to end the session 0.07 percent lower at 7,678.79.
Today’s macroeconomic statements include the Chicago Fed national activity index for June, due out at 13:30 BST, to be followed by the flash eurozone’s consumer confidence index for July and US existing home sales for June, both due out at 15:00 BST.
With the earnings season yet to get in full swing, there are no blue-chips due to report today. In other news, The Times reports that GSK’s chief executive Emma Walmsley is set to put oncology at the heart of the turnaround of the group’s pharmaceuticals division.