FTSE 100 preview: Index looking up despite US selloff
The UK benchmark index looks set to start the new quarter on the front foot, with investors returning from a four-day Easter holiday weekend, shrugging off a downbeat lead from the US. GKN (LON:GKN) will be in focus today after it emerged that the majority of shareholders had backed a bid by turnaround specialist Melrose Industries (LON:MRO).
Index seen steady
CNBC reports that according to IG, the FTSE 100 is seen opening 13 points higher at 7,018. In the US, shares tumbled last night, pressured by lingering worries over a trade war as well as tech industry concerns. Amazon meanwhile came under pressure after President Donald Trump attacked the e-commerce giant, saying that it was scamming the US Postal Service.
“The market leaders are under pressure,” said Marc Chaikin, CEO of Chaikin Analytics, as quoted by CNBC. “It’s a situation where the proven winners for the past few years are faltering.” When that happens, “there is a negative psychological sense in the market”. Asian shares have slipped into the red this morning, taking cues from the US.
On Thursday, the Footsie closed marginally higher, adding 11.87 points to end the session 0.17 percent higher at 7,056.61, while posting a fall for the quarter.
Macroeconomic releases are in short supply this Tuesday, with the UK manufacturing purchasing managers’ index for March due out at 09:30 BST. IG reports that the index is forecast to have fallen to 54.3 last month, from 55.2. There are no blue-chips scheduled to update investors on their performance this morning. In company news, Melrose has clinched a takeover of GKN, with holders of 52.43 percent of the voting rights in the engineering group backing the turnaround specialist’s hostile bid.
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