FTSE 100 preview: Index to open lower amid Brexit delay hopes

The FTSE 100 looks set to open lower this morning, with the pound rising amid hopes for a delay in the UK’s exit from the European Union. On the corporate front, the earnings season will continue with Persimmon (LON:PSN) and Standard Chartered (LON:STAN).

Footsie to open lower

IG’s opening calls suggest that the FTSE 100 will start trading 0.62 percent lower at 7,139 points. Brexit is likely to be in focus today with Bloomberg reporting that Prime Minister Theresa May is expected to allow her cabinet to discuss extending the Brexit deadline beyond March 29 later today.

Stateside, shares rose last night, as President Donald Trump signalled he would delay tariffs on Chinese goods, pointing to ‘substantial progress’ in the talks between Washington and Beijing.

“As long as China and the US are talking, the market will think something will get done,” said Michael Cuggino, president at Permanent Portfolio Funds, as quoted by CNBC. “That’s a good thing.” Asian shares have tracked the US higher this morning.

In the UK, the FTSE 100 started the week little changed yesterday, gaining 5.14 points to close 0.07 percent higher at 7,183.74 as investors digested Brexit and trade deal prospects.

Tuesday’s releases

Today’s macroeconomic statements include Germany’s GfK consumer confidence index for March, due out at 07:00 GMT, while in the US, the nation’s housing starts and building permits data for December will be released at 13:30 GMT.

In company updates, Standard Chartered will post its full-year results after booking a $900-million charge for potential penalties on both sides of the Atlantic, while Persimmon’s results will come amid worries that the housebuilder might lose its Help to Buy contracts. Croda (LON:CRDA) and Fresnillo (LON:FRES) are also reporting today.