The FTSE 100 looks poised to open higher, even with trade worries set to continue in the new week. Shire (LON:SHP) will be in focus on the corporate front today amid reports that the Takeda family sees the pharmco’s takeover by the Japanese group as ‘a disaster’.
FTSE 100 seen lower
IG’s opening calls suggest that the Footsie will start the session 0.15 percent higher at 7,288 points. In the US, shares closed lower on Friday, as President Donald Trump signalled more tariffs on Chinese imports.
“The $200 billion we’re talking about could take place very soon, depending on what happens with them,” he said, as quoted by CNBC. “I hate to say this, but behind that, there's another $267 billion ready to go on short notice if I want.” In Asia, shares have kicked off the week in the red, tracking the US lower.
“The overall sense is that the United States will continue to escalate the pressure until China submits to US demands which does not seem likely any time soon,” JPMorgan said in a note, as quoted by Reuters.
The FTSE 100 gave up 41.26 points to close 0.56 percent lower at 7,277.70 on Friday, pressured by a stronger pound, as well as the ongoing trade fears.
Today’s macroeconomic releases include the UK trade balance for July, due out at 09:30 BST. IG reports that the nation’s deficit is expected to have widened to £2.3 billion from £1.8 billion. In corporate updates, investors will eye a report by Primark owner Associated British Foods (LON:ABF). In other news, The Sunday Times reports that a leading member of the family that founded the Japanese pharmaceuticals giant Takeda has spoken out for the first time in opposition to its $62-billion takeover of Shire.