FTSE 100 preview: Index seen lower as MPs reject no-deal Brexit

Taxpayers set to lose £31bn on RBS rescue

FTSE 100 preview: Index seen lower as MPs reject no-deal Brexit

The FTSE 100 looks set to open lower this morning, as the pound rose following last night’s parliamentary vote which saw MPs reject a ‘no-deal’ Brexit. Royal Bank of Scotland Group (LON:RBS) will be in focus today as the UK’s fiscal watchdog lifted its estimate for the likely loss to the taxpayers on the lender’s bailout during the financial crisis.

FTSE 100 seen lower

IG’s opening calls suggest that the Footsie will start trading 0.22 percent lower at 7,144 points. Investors are likely to stay on the sidelines today, with MPs set for another vote today after rejecting a ‘no-deal’ Brexit last night. In the US, shares rose last night, led higher by the tech sector, while Asian shares have been mixed this morning, following the latest Brexit vote.

CNBC quoted analysts at Singapore’s DBS Group as commenting in a morning note that yesterday’s vote to reject a ‘no-Brexit’ did not “remove the risk of a disorderly Brexit on March 29”.

In the UK, the FTSE 100 closed little changed yesterday, inching 8.04 points higher to end trading 0.11 percent better off at 7,159.19, as investors awaited the outcome of this week’s second Brexit vote and digested company releases.

Thursday’s calendar

Today’s macroeconomic releases include Germany’s final consumer price index for February, due out at 07:00 GMT, to be followed by US new home sales data for January at 14:00 GMT. In company news, Reuters reports that Britain’s fiscal watchdog has increased its estimate of the likely loss to taxpayers from the 2008 rescue of RBS to £31 billion.

FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include Anglo American (LON:AAL), CRH (LON:CRH), GVC Holdings (LON:GVC) and Land Securities (LON:LAND). Reuters’ calculations suggest that ex-divs will knock 3.6 points off the Footsie.

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