FTSE 100 preview: Lacklustre start ahead of Trump-Xi meeting

FTSE 100 preview: Lacklustre start ahead of Trump-Xi meeting
Written by:
Tsveta van Son
27th June 2019

The FTSE 100 is expected to open little moved from yesterday’s close, with investors eyeing the US-China trade talks at the upcoming G20 summit. In Footsie company news, Vodafone (LON:VOD) is expected to secure EU approval for its Liberty deal.

FTSE 100 seen little changed

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IG’s opening calls suggest that the Footsie will start Thursday’s trading 0.06 percent higher at 7,421 points. In the US, shares fell last night, with investors staying on the sidelines ahead of a key meeting between President Donald Trump and Chinese President Xi Jinping.

“What we’re probably going to hear will be choreographed. They’ll probably say the meeting went well and they’re going back to the negotiating table,” said Art Hogan, chief market strategist at National Securities, as quoted by CNBC. “This is all fixable […] but the problem is there is too much pageantry around all of this. Both sides need to play to their bases.” Asian shares meanwhile have advanced in afternoon trade amid optimism ahead of the meeting.

At home, the Footsie closed little changed in the previous session, giving up 6.04 points to end trading 0.08 percent lower at 7,416.39, pressured by comments by Federal Reserve officials which tempered expectations for a rate cut.

Thursday’s agenda

Today’s macroeconomic releases include eurozone business confidence data for June, due out at 10:00 BST, to be followed by Germany’s preliminary consumer price index for June at 13:00 BST. In the US, the final estimate for the nation’s first-quarter gross domestic product is out at 15:30 BST, followed by pending home sales data for May at 15:00 BST. In corporate updates, Reuters reports that Vodafone is set to secure EU antitrust approval for its $22-billion bid for Liberty Global’s cable networks in Germany and Central Europe after offering concessions last month.

FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include British American Tobacco (LON:BATS), British Land (LON:BLND), Burberry (LON:BRBY), Experian (LON:EXPN) and JD Sports (LON:JD). Reuters’ calculations suggest that ex-divs will knock 6.18 points off the Footsie.

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