FTSE 100 preview: Index set for upbeat start to quarter after Asia data

on Jul 3, 2017

The UK benchmark index looks set to start the month and the quarter on the front foot, following upbeat manufacturing data out of Asia. In company news, AstraZeneca’s (LON:AZN) boss reportedly threatened one of the company’s top executives over his move to join rival GlaxoSmithKline (LON:GSK).

IG’s opening calls suggest that the FTSE 100 will start the day 0.21 percent higher at 7,328 points. The index is likely to take cues from Asia, where stocks have advanced this morning after upbeat manufacturing data out of China, South Korea, Japan and Taiwan. In the US, stocks rose on Friday, posting an upbeat end to the quarter.
“We’re off to a superb start and why not? The data have been good,” said Mike Baele, managing director at US Bank Private Client Reserve, as quoted by CNBC. “But what’s really been positive have been earnings and the forecast for the rest of the year are pretty good.”

In the UK, however, the Footsie lost ground on Friday, shedding 37.60 points to end the session 0.51 percent lower at 7,312.72, pressured by monetary policy concerns. The blue-chip index recorded more than a three-percent loss for the month.
Today’s macroeconomic calendar includes the UK manufacturing purchasing managers’ index (PMI) for June, due out at 09:30 BST. IG reports that the index is expected to have fallen from 56.7 to 56.4 last month. The eurozone employment rate for May is scheduled to be announced at 10:00 BST, while in the US, the nation’s ISM manufacturing PMI is out at 15:00 BST.
In company developments, The Times reports that AstraZeneca had sought to threaten and punish the company’s head of Europe Luke Miels when he tried to deflect to GSK.