The FTSE 100 looks set to start the new week on the back foot, with the ongoing Brexit worries likely to continue weighing on investor sentiment. London- and Sydney-listed miner BHP Billiton (LON:BLT) will be in focus in today’s session as it settled a dispute with the Australian government.
Index seen opening lower
CNBC reports that according to IG, the FTSE 100 is seen opening 10 points lower at 7,016. The UK government turmoil will stay firmly in focus, as Reuters reported that Prime Minister Theresa May had said yesterday that toppling her would risk delaying Brexit as she faces the possibility of a leadership challenge from within her own party. In the US, shares posted losses for the week on Friday, pressured by the tech sector.
“The danger of a full retest of the October looks real enough, particularly given that the key technology sector remains at the centre of liquidation,” said Michael Shaoul, chairman and CEO of Marketfield Asset Management, in a note, as quoted by CNBC. Asian shares meanwhile have been mixed this morning, while oil has inched higher.
At home, the UK benchmark index fell on Friday, giving up 24.13 points to end trading 0.34 percent lower at 7,013.88, as investors digested the UK government turmoil which pressured London-listed lenders. RBS (LON:RBS) was the sector’s biggest faller, giving up 3.26 percent.
Quiet Monday on the cards
There are no major macroeconomic releases out of Europe to guide the market further this morning, and with the earnings season winding down, there are no FTSE 100 companies scheduled to update investors on their performance.
Reuters meanwhile reports that BHP Billion has signed an agreement with the Australian Taxation Office to settle the transfer pricing dispute regarding its marketing operations in Singapore.