The UK benchmark index looks set to open lower this morning, with the global rally fuelled by the US-China truce losing steam. On the corporate front, Tesco (LON:TSCO) has commented on the proposed merger between ‘Big Four’ rivals J Sainsbury (LON:SBRY) and Asda which is currently undergoing a competition investigation.
FTSE 100 to open in the red
CNBC reports that the Footsie is seen opening 21 points lower at 7,041, according to IG. The blue-chip index is set to take cues from Asia, where shares have fallen this morning amid doubts over the temporary truce between Washington and Beijing.
“Overall trade news overnight (has) probably left the market with more questions than answers, can the US and China really resolve their differences in 90 days?” National Australia Bank analysts said in a note to clients, as quoted by Reuters. “It seems that more details and signs of progress will be needed if the initial trade truce warm fuzzy feeling is to be sustained.”
In the UK, the FTSE 100 kicked off December on an upbeat note, gaining 82.17 points to close 1.18 percent higher, with investors cheering the trade truce, which also lifted US shares last night.
Today’s macroeconomic statements include the UK construction purchasing managers index for November, due out at 09:30 GMT. IG reports that the index is expected to have fallen to 52, from 53.2.
On the corporate front, Ferguson (LON:FERG) is due to post results this morning, while The Sage Group (LON:SGE) has appointed a new chief financial officer. In other news, The Times reports that Tesco has said that the proposed merger of Sainsbury’s and Asda should not go ahead unless ‘extensive remedies’ are provided by its rivals.