FTSE 100 preview: Footsie seen lower after downbeat leads
The FTSE 100 looks set to start trading in the red this morning, pressured by downbeat leads from the US and Asia, amid protests in Hong Kong. On the corporate front, investors will eye an update from Tesco (LON:TSCO).
FTSE 100 seen lower
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IG’s opening calls suggest that the Footsie will start trading 0.31 percent in the red at 7,345 points. In the US, shares fell last night, amid renewed worries over the trade relations between Washington and Beijing. In Asia, shares have also retreated this morning, further pressured by protests in Hong Kong.
“You already have significant political risk premium embedded into Hong Kong equities because of the trade effects that are going on and Hong Kong is the gateway to China. So, the outlook for China has taken a knock in the past month or so,” Binay Chandgothia, managing director and portfolio manager at Principal Global Investors, told CNBC’s ‘Squawk Box’ this morning.
At home, the Footsie fell in the previous session, giving up 30.83 points to close 0.42 percent lower at 7,367.62, pressured by trade worries and with investors digesting corporate news.
Thursday’s agenda
Today’s macroeconomic updates include Germany’s final inflation rate for May, due out at 07:00 BST. In company news, Tesco is scheduled to update investors on its first-quarter performance. DS Smith (LON:SMDS) meanwhile is due to post final results, while Wm Morrison Supermarkets (LON:MRW) is expanding its partnership with US e-commerce giant Amazon (LON:AMZN). Vodafone (LON:VOD) has said that its unit in Germany has acquired spectrum for 5G services.
FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include 3i Group (LON:III), NMC Health (LON:NMC), Persimmon (LON:PSN), Severn Trent (LON:SVT) and WPP (LON:WPP). Reuters’ calculations suggest that ex-divs will knock 4.5 points off the Footsie.
