The FTSE 100 looks set to open lower this morning, as the trade tensions between Washington and Beijing escalated. In corporate releases, online grocer Ocado (LON:OCDO) is due to post results today.
FTSE 100 to open lower
IG’s opening calls suggest that the UK benchmark index will start the session 0.51 percent in the red at 7,268 points. Asian shares have fallen this morning, as US President Donald Trump imposed tariffs on about $200 billion worth of Chinese imports. US shares closed lower last night, following news that the announcement on US-China trade will be coming after the bell.
“The announcement dashes hopes of any trade negotiations between two rivals,” analysts at ING said in a note, as quoted by Reuters. “Be prepared for a prolonged period of risk-off.” The newswire, however, noted that some analysts had said that the market reaction was a bit muted because the announcement was in line with expectations and had been baked into prices.
CNBC meanwhile quoted analysts as saying that the focus would now shift to China’s response to the announcement.
“China may be limited in its ability to impose similar tariffs in volume terms, but it can still aim to disrupt the US supply chain with those tech exports an obvious target and the cancelation of trade talks is also likely to dampen the mood," Rodrigo Catril, a senior foreign-exchange strategist at the National Australia Bank, wrote in a morning note, as quoted by the newswire.
In the UK, the FTSE 100 closed little changed yesterday, giving up 1.94 points to close 0.03 percent lower at 7,302.10, pressured by the prospects of fresh US tariffs on China.
There are no major macroeconomic releases out of Europe this morning to provide further direction to the market. On the corporate front, online grocer Ocado is scheduled to update investors on its third-quarter performance this morning following a half-year loss reported earlier this year.