FTSE 100 preview: Index expected to open on a dip due to strong pound

The UK benchmark index looks set to open on a loss as weak USD impacts value of GBP.

FTSE 100 preview: Index expected to open on a dip due to strong pound

IG’s Opening calls predict the UK benchmark index will open this morning on a loss at 7549p, down 0.18 per cent.

The FTSE closed on Wednesday with a significant loss of 0.71 per cent, achieving a final total of 7,563.21p (a fall of 54.01), eclipsing the gains made on Tuesday. 

Pound Value increases and index drops following Brexit hints

European Union's chief negotiator Michel Barnier yesterday inspired a spark of positivity over Brexit, in a press statement covered by ITV, he stated that the bloc was “prepared to offer a partnership with Britain such as has never been with any other third country". The Sterling rose over 1 per cent against the dollar to reach $1.3006, and rose 0.99 per cent against the Euro to €1.1118, causing an overall drop on the U.K. blue-chip index. 

Brexit and weak USD lead to gains in European markets

In contrast, European markets experienced a positive day yesterday. The DAX (INDEXDB: DAX) closed with a market value of 12,561.68p (an increase of 34.26, up 0.27%). EUROSTOXX 50 (INDEXSTOXX: SX5E) also posted a positive close, rising 8.56 to a final value of 3,456.13 (a gain of 0.25%). The CAC 40 (INDEXEUROCORE) continued its progression from yesterday, finishing the day with a gain of 16.34 to 5,501.33 (up 0.30%)

Today’s calendar

Most notable events today are the ex-dividend payments to be announced by Intercontinental Hotel Group (LON:IHG) and St James’ Place Plc (LON:STJ). Meanwhile, Centrica Plc (LON:CNA) did not suffer from yesterday’s headline news over the British Gas overcharging scandal, despite a large Ofgem fine. They closed yesterday’s market on a rise with a value 142.85 +0.90 (0.63%).

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