FTSE 100 preview: Downbeat start for Footsie amid global tensions

The FTSE 100 looks set to start the new week on the back foot amid the ongoing US-China trade tensions along with concerns in the Middle East. On the corporate front, Royal Bank of Scotland (LON:RBS) is reportedly interested in the book of mortgages of Tesco’s (LON:TSCO) banking unit.

FTSE 100 seen lower

IG’s opening calls suggest that the Footsie will start trading 0.21 percent lower at 7,392 points. In the US, shares fell slightly on Friday amid worries over the country’s trade relations with China.

In Asia, shares have advanced this morning, boosted by optimism over the US-China trade relations ahead of a meeting between Presidents Donald Trump and Xi Jinping later this week on the sidelines of the G20 summit in Japan.

“Event-driven players are buying back stocks as the United States and China at least appear to be talking to each other,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, as quoted by Reuters. Oil prices meanwhile have advanced amid lingering tensions between Washington and Tehran after Iran shot down a US drone, while US Secretary of State Mike Pompeo signalled sanctions on Tehran.

At home, the Footsie closed little changed in London in the previous session, giving up 16.94 points to end trading 0.23 percent lower at 7,407.50.

Monday’s agenda

Today’s macroeconomic releases include Germany’s business climate IFO index for June, due out at 09:00 BST. On the other side of the Atlantic, the Chicago Fed national activity index will be announced at 13:30 BST. On the corporate front, Carnival (LON:CCL) is scheduled to update investors on its performance this Monday. In other FTSE 100 company developments, Sky News reports that RBS  is pursuing its biggest acquisition since the financial crisis by tabling a bid for Tesco Bank’s £3.7-billion book of mortgages.