The Footsie looks poised to start the new week on the front foot, with investors set to shrug off global growth worries which have plagued market sentiment in the US and Asia. In company news, British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) is reportedly stepping up its preparations should the UK leave the European Union without a deal.
Index looking up
IG’s opening calls suggest that the FTSE 100 will start trading 0.74 percent higher at 7,158 points. US shares fell on Friday, with falls in the oil price fuelling worries about global economic growth.
“The overall trend is definitely weakening,” said Benjamin Lau, chief investment officer of Apriem Advisors, as quoted by CNBC. “We’re seeing more anecdotal evidence that the global economy is weakening from the bottom end to the top end.” Asian shares have also been subdued this morning. Reuters, however, reported that Saudi Arabia’s plans to cut production had helped to halt the slide in oil.
In the UK, the FTSE 100 fell on Friday, giving up 35.34 points to close 0.39 percent lower at 7,105.34, following hawkish comments by the Federal Reserve, which ended a rally prompted by the US mid-term elections earlier in the week.
There are no major macroeconomic releases today to guide the market further, and no blue-chip companies are scheduled to update investors on their performance.
In corporate developments, The Times reports that according to El Pais, the Spanish newspaper, IAG is seeking the support of the Spanish government as it steps up its preparations for a no-deal Brexit. Sources with knowledge of the matter meanwhile have told Reuters that Japanese drugmaker Takeda Pharmaceutical is set to win conditional EU antitrust approval for its $62-billion bid of Shire (LON:SHP).