FTSE 100 preview: Index to open lower despite upbeat Asia lead

The UK benchmark index looks set to start the week on the back foot, pressured by Brexit worries, despite a positive lead from Asia. Tesco (LON:TSCO) will be in focus on the corporate front today amid reports that it may cut thousands of jobs.

Index to open lower

IG’s opening calls suggest that the FTSE 100 will start trading 0.46 percent lower at 6,778 points. The blue-chip index is poised for a lower start despite an upbeat lead from Asia where shares have climbed higher following a deal to reopen the US government.

“The rise in the broader stock markets looks to keep going. The US government reopening is definitely a plus for market sentiment,” said Soichiro Monji, senior economist at Daiwa SB Investments, as quoted by Reuters, adding, however, that there were still potential risks, such as the US-China trade row and Brexit. In the US, shares rose on Friday following the government deal, with investors shrugging off a downbeat report from Intel.

At home, the Footsie slipped lower in the previous session, shedding 0.14 percent to 6809.22, pressured by a stronger pound and a fall in heavyweight Vodafone (LON:VOD), whose results disappointed investors.

Monday’s agenda

Today’s macroeconomic releases include US durable goods orders and retail sales for December, as well as the nation’s trade balance for November and housing starts for December, all due out at 13:30 GMT, to be followed by the country’s new home sales for December at 15:00 GMT.

In company news, The Times reports that unions have demanded meetings with Tesco amid reports that Britain’s biggest supermarket may cut as many as 15,000 jobs and close some of its meat, fish and deli counters in a new drive to bring down costs.