FTSE 100 preview: Muted start ahead as Theresa May survives no-confidence vote

The FTSE 100 looks set to open little changed this morning, following positive leads from the US and Asia, and with Prime Minister Theresa May surviving a Conservative Party confidence vote. J Sainsbury (LON:SBRY) will stay in focus as the Competition and Markets Authority rejected a request by the blue-chip grocer and Walmart’s Asda for more time in the watchdog’s probe into their proposed tie-up.

Muted start ahead

IG’s opening calls suggest that the Footsie will start trading 0.01 percent higher at 6,881 points. Investors will keep an eye on the UK political developments after May survived a no-confidence vote last night, after earlier this week, she cancelled a parliamentary vote on her Brexit deal with the EU.

“The fact remains that the EU is highly unlikely to offer the reassurance MPs are demanding on the Irish backstop,” analysts at ING told Reuters, adding there was a risk that a parliamentary vote on the Brexit deal will not take place until later in the first quarter of 2019.

While US-China trade deal hopes boosted shares on the other side of the Atlantic, the major indices closed off session highs. Asian shares meanwhile have tracked the US higher this morning.

In the UK, the FTSE 100 continued this week’s rally, gaining 73.25 points to close 1.08 percent higher at 6,880.19 as investors shrugged off the UK political turmoil and instead focused on optimism over a US-China trade deal.

Thursday’s agenda

Investors will eye the European Central Bank decision today, which is scheduled to be announced at 12:45 GMT, followed by the traditional press conference at 13:30 GMT. On The company front, Ocado (LON:OCDO) and Bunzl (LON:BNZL) are set to update investors on their performance today.

Shares in Associated British Foods (LON:ABF) and 3i Group (LON:III) are due to trade without the attraction of their latest dividend in today’s session and Reuters’ calculations suggest that this would knock one point off the FTSE 100.