FTSE 100 preview: Index looking up despite downbeat leads
The FTSE 100 looks set to open marginally higher this morning, despite uninspiring leads from the US and Asia. Barclays (LON:BARC) and J Sainsbury (LON:SBRY) meanwhile are expected to take the stage on the corporate front.
FTSE 100 seen steady
IG’s opening calls suggest that the Footsie will start trading 0.11 percent higher at 7,480 points. Investors are likely to shrug off a downbeat lead from the US where stocks slipped from record levels last night on the back of corporate updates.
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“I think we’re going to see a consolidation at some point,” Christian Fromhertz, CEO of The Tribeca Trade Group, commented, as quoted by CNBC. “It’s not to say we need a major pullback; I just think we need to consolidate the gains a little bit.”
Asian shares have also slipped into the red this morning. Reuters notes that a surprise deterioration in German and South Korean economic data has rekindled fears of slowing global growth.
In the UK, the FTSE 100 fell in the previous session, giving up 51.32 points to close 0.68 percent lower at 7,471.75.
Today’s macroeconomic releases include Germany’s GfK consumer confidence index for May, due out at 07:00 BST. In the US, the nation’s durable goods orders data for March will be released at 13:30 BST.
In company developments, Barclays is due to kick off the FTSE 100 banking reporting season this morning amid pressure ahead of its annual general meeting, while the Competition and Markets Authority is expected to announce its decision on Sainsbury’s proposed tie-up with Walmart’s Asda.
Blue-chips, whose shares will be trading without the attraction of their latest dividend this morning, include Antofagasta (LON:ANTO), Glencore (LON:GLEN), Fresnillo (LON:FRES), Informa (LON:INF), Legal & General (LON:LGEN) and Spirax-Sarco (LON:SPX). Reuters’ calculations suggest that ex-divs will knock 7.66 points off the Footsie.