The UK benchmark index looks set to start the week on the back foot, as China cancelled talks with the US, reigniting trade war fears. Sky (LON:SKY) will be in focus today as Comcast outbid Fox in a blind auction process set by the UK's Takeover Panel.
Index to open lower
IG’s opening calls suggest that the Footsie will start the session 0.38 percent lower at 7,462 points. The blue-chip index is likely to take cues from Asia, where shares have slipped this morning as the Wall Street Journal reported that China had cancelled planned trade talks with the US.
“Both the US and China are digging in, and increasingly the subtext seems to be as much about advancing a trade ideology as it is about rescinding trade tariffs,” said John Bilton, head of global multi-asset strategy at JPMorgan Asset Management, as quoted by Reuters. “While we continue to be constructive on the global economy over the coming quarters, it is hard to see the current surge in US activity morphing into another period of coordinated global growth.”
US shares rose on Friday, amid easing concerns about global trade. At home, the FTSE 100 rallied 1.67 percent to close at 7,490.23, finding further support in a weaker pound.
Today’s macroeconomic statements include Germany’s business climate IFO index for September, due out at 09:00 BST, to be followed by the Chicago Fed index for August at 13:30 BST. There are no blue-chips scheduled to update the market on their performance this morning.
In corporate developments, Comcast has submitted the highest bid in the auction for Sky. Reuters meanwhile reports that Canada’s Barrick Gold is in late-stage talks to acquire FTSE 100 miner Randgold Resources (LON:RRS).