FTSE 100 preview: Index seen lower after Brexit deal defeat

on Mar 13, 2019

The FTSE 100 is called lower this morning, after Prime Minister Theresa May’s updated Brexit deal suffered a crushing defeat in parliament last night. In corporate releases, Wm Morrison Supermarkets (LON:MRW) and Standard Life Aberdeen (LON:SLA) are among the companies reporting today.

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Footsie seen lower

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IG’s opening calls suggest that the FTSE 100 will start trading 0.16 percent lower at 7,140 points. Investors are likely to stay on the sidelines today after UK MPs rejected Prime Minister Theresa May’s amended deal with the EU last night. Reuters reports that parliament is now set to vote on where the country should quit the bloc without a deal.

“One door has closed but other possibilities have opened up and markets are hopeful that Wednesday’s vote on a no-deal Brexit will suffer a big defeat,” Timothy Graf, head of macro strategy at State Street Global Advisors, told Reuters.

US shares were mixed last night, with the Dow pressured by another hefty fall in Boeing shares. Asian shares meanwhile have fallen this morning, pressured by the ongoing Brexit uncertainties. CNBC quoted Philip Wee, a foreign exchange strategist at Singapore’s DBS Group, as saying in a note that there was no guarantee the European Union would accept a possible request from the UK to delay its departure unless British lawmakers “demonstrate that they know what they want”.

In the UK, the FTSE 100 added 20.53 points to close 0.29 percent higher at 7,151.15, holding steady as investors awaited the latest Brexit developments.

Wednesday’s agenda

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Investor attention will be focused on the Spring Budget today, scheduled for 12:30 GMT. In the US, the nation’s durable goods orders for January are also due out at 12:30 GMT. On the corporate front, in addition to Morrisons and Standard Life Aberdeen, investors will also eye results by Prudential (LON:PRU) and Hikma Pharmaceuticals (LON:HIK).

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