FTSE 100 preview: Footsie looking up after brutal selloff

FTSE 100 preview: Footsie looking up after brutal selloff
Written by:
Tsveta van Son
May 24, 2019

The FTSE 100 looks set to open marginally higher this morning, ahead of a long holiday in the UK. The upbeat start will come after the benchmark index suffered a brutal selloff in the previous session on the back of economic and political worries.

Footsie seen higher

Reuters reports that the FTSE 100 is seen opening 14 points higher at 7,245, according to financial bookmakers. In the US, shares tumbled last night as trade war fears intensified.

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“The trade landscape looks bleaker than ever,” Adam Crisafulli, executive director at JP Morgan, said in a note, as quoted by CNBC, adding that data from around the world is indicating an economic rebound from earlier this year is “showing signs of attenuating” while the Federal Reserve is in no hurry to cut rates. Asian shares have also mostly retreated this morning, with investors continuing to focus on the strained trade relations between Washington and Beijing.

In the UK, the FTSE 100 tumbled in the previous session, giving up 103.15 points to end trading 1.41 percent lower at 7,231.04, pressured by the US-China trade worries and political concerns at home, with Prime Minister Theresa May under pressure to quit.

Friday’s agenda

Today’s macroeconomic statements include the UK’s retail sales for April, due out at 09:30 BST and IG reports that sales are forecast to have climbed 4.1 percent year-on-year, and to have fallen 0.6 percent month-on-month. In the US, the nation’s durable goods orders for April are scheduled to be released at 13:30 BST.

In FTSE 100 company news, Reuters reports that GlaxoSmithKline (LON:GSK) has said that it will reintroduce incentive payments for sales representatives in some countries to retain talent after stopping them for years in the wake of scandals over illegal sales practices. Informa (LON:INF) meanwhile has posted a trading update this morning.