FTSE 100 preview: Muted start ahead as investors eye Brexit deal vote

The UK benchmark index looks set to open marginally lower this morning, ahead of the latest Brexit deal vote, and as Prime Minister Theresa May won assurances from the European Union. On the corporate front, investors will digest the pay package of Unilever’s (LON:ULVR) former boss Paul Polman.

Muted start ahead

IG’s opening calls suggest that the Footsie will start today’s session 0.04 percent lower at 7,128 points. Brexit will stay firmly in focus today after European Commission head Jean-Claude Juncker agreed to additional assurances ahead of a Brexit deal vote in the UK’s parliament later today. The news has lent support to the pound.

Greg McKenna, strategist at McKenna Macro, told Reuters that a lower likelihood of crashing out of the EU with no Brexit deal could help to inject some bullish sentiment into equity markets by eliminating one of the three major concerns of global investors, alongside trade and slowing global growth.

Asian shares have climbed higher this morning, following the latest Brexit developments, while in the US, stocks rose last night, with a rally in tech shares helping offset a hefty drop in Boeing. At home, the Footsie kicked off the new week on the front foot, gaining 26.31 points to close 0.37 percent higher at 7,130.62, finding support in a weaker pound ahead of this week’s Brexit votes.

Tuesday’s agenda

Apart from the latest parliamentary vote on Brexit, investors will also await the UK’s gross domestic product data for January, due out at 09:30 GMT, followed by the US consume price index for February at 12:30 GMT. In company news, Unilever has disclosed that its boss Paul Polman was paid a total of €11.7 million (£10 million) for his last year at the consumer goods giant.