FTSE 100 preview: Index seen lower ahead of jobs report

on Jul 7, 2017

The UK benchmark index looks set to open in the red this morning, amid investor caution ahead of the highly-anticipated monthly jobs report in the US later today. Geopolitical concerns and a dip in oil are also likely to weigh on market sentiment in today’s trading.

IG’s opening calls suggest that the Footsie will start the last trading day of the week 0.22 percent lower at 7,321 points. Stocks on the other side of the Atlantic closed lower last night, pressured by a renewed tech selloff, and after a jobs report from ADP and Moody’s Analytics undershot expectations.
Asian shares meanwhile have tracked the US lower this morning, further pressured by a dip in oil and investor caution ahead of a meeting between US President Donald Trump and his Russian counterpart Vladimir Putin.

Stephen Innes, a senior trader an OANDA, told CNBC that he had been ‘quite nervous’ about developments in the oil patch. “There is an air of uncertainty around the commodity patch given oil markets’ far-reaching implications across all asset classes,” he pointed out.
The FTSE 100 closed in the red yesterday, shedding 30.32 points to end the session 0.41 percent lower at 7,337.28, pressured by geopolitical concerns as Trump said yesterday that Russia had interfered in the 2016 election.

This morning’s macroeconomic announcements include the UK trade balance for May, due out at 09:30 BST. On the other side of the Atlantic, the US non-farm payrolls report is scheduled to be released at 13:30 BST.