FTSE 100 preview: Flat start ahead amid G20 summit
The FTSE 100 looks set to start the last trading day of the week barely moved, with investors eyeing the G20 summit in Osaka, Japan. BT Group (LON:BT.A) will be in focus with Orange expected to sell its stake in the former telecoms monopoly.
Muted start ahead
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CNBC reports that the Footsie is seen opening one point down at 7,401 this morning. In the US, shares were mixed last night, with investors awaiting the meeting between President Donald Trump and China’s President Xi Jinping at the G20 summit in Osaka. Asian shares meanwhile have been subdued this morning.
“I’m not sure the Americans can deliver what the Chinese want and the Chinese don’t want to deliver what the Americans want,” said Greg McKenna, strategist at McKenna Macro, as quoted by Reuters, adding that he sees an ‘extend and pretend’ outcome, in which Chinese and US officials agree to continue talks, as the most likely outcome of the weekend meeting.
In the UK, the FTSE 100 fell marginally in the previous session, giving up 14.06 points to close 0.19 percent lower at 7,402.33. Kingfisher (LON:KGF) was the blue-chip index’s biggest riser in percentage terms, with investors digesting a CEO appointment.
Today’s macroeconomic releases include the final estimate for the UK’s first-quarter gross domestic product, due out at 09:30 BST. IG reports that growth is expected to come in at 1.8 percent year-on-year and 0.5 percent quarter-on-quarter.
Flash eurozone inflation data for June will be announced at 10:00 BST, while in the US, personal income and spending figures for May are out at 13:30 BST, to be followed by Chicago’s purchasing managers’ index for June at 14:45 BST.
In FTSE 100 company news, Reuters reports that France’s Orange is set to sell its remaining 2.5-percent stake in BT, valued at over $600 million.