The UK benchmark index looks set to open little changed this morning, despite the latest trade developments between the US and China. Tesco (LON:TSCO) will be in focus today amid reports that it is nearing the launch of its new discount chain.
FTSE 100 seen lower
IG’s opening calls suggest that the Footsie will open 0.04 percent higher at 7,276 points. The index is expected to start the session steady despite news that China had requested permission from the World Trade Organisation to sanction the US, which has weighed on Asian markets this morning. US, shares, however, rose last night, helped by a recovery in the tech sector.
“In thinking of the prospects of the trade war, it is important to distinguish the journey from the destination,” Mohamed A. El-Erian, Chief Economic Advisor at Allianz SE, told the Reuters Global Markets Forum. “The journey will remain very noisy and unsettling. But I suspect the destination will be less so.”
At home, the Footsie closed little changed yesterday, giving up 5.76 points to end the session 0.08 percent lower at 7,273.54, pressured by a gain in the pound. Ashtead (LON:AHT) was the session’s biggest riser in percentage terms, adding 5.18 percent to close at 2,398.00p after signalling plans to boost its buyback plans.
There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the nation’s producer price index for August will be announced at 13:30 BST.
In company news, The Times reports that the launch of a Tesco discount chain is set to be confirmed in Cambridgeshire next week. FTSE 100 peer Wm Morrisons (LON:MRW) meanwhile is facing employment tribunal claim over equal pay, the Guardian has revealed.