FTSE 100 preview: Index to track Asia lower after Apple warning
The UK benchmark index looks set to open lower this morning, with a revenue warning from Apple weighing on sentiment in Asia. On the corporate front, Next (LON:NXT) will kick off the Christmas reporting for blue-chip retailers.
FTSE 100 seen lower
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Reuters reports that the Footsie is seen opening 26 points lower at 6,708, according to financial bookmakers. The blue-chip index is likely to take cues from Asia, where shares have retreated this morning as US tech giant Apple lowered its first-quarter revenue guidance, blaming a slowdown in China and weaker iPhone sales.
“This piles on to existing anxiety of a slowdown in global growth,” said Jeff Kilburg of KKM Financial, as quoted by CNBC. “Apple can be used as a proxy to China’s growth”. In the US, shares posted small gains last night following a volatile session.
At home, the Footsie started the new year marginally higher, inching 6.10 points to close 0.09 percent higher at 6,734.23, recovering from a selloff earlier in the session, as it found support in less risky defensive stocks.
Today’s macroeconomic statements include the UK’s construction purchasing managers’ index (PMI) for December, due out at 09:30 GMT and IG reports that the index is expected to have climbed to 53.8, from 53.4. In the US, the ADP employment report for December will be announced at 13:15 GMT, to be followed by the nation’s ISM manufacturing PMI for the same month at 15:00 GMT. Next will be in focus in company news today, with the retailer set to post its Christmas trading update, following smaller London-listed peer Asos’ (LON:ASC) profit warning last month.
Blue-chips, whose shares will be trading without the attraction of their latest dividend this Thursday include Auto Trader (LON:AUTO), British Land (LON:BLND) and Experian. Reuters’ calculations suggest that ex-divs will knock 0.7 points off the Footsie.