FTSE 100 preview: Footsie seen steady amid expectations for Fed rate cut

on Jul 4, 2019
Updated: Jun 14, 2024

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The FTSE 100 looks set to start trading marginally higher this morning, with investors digesting the prospects for a rate cut by the US Federal Reserve. On the corporate front, a couple of blue-chip companies are scheduled to update the market on their performance this morning.

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FTSE 100 seen steady

IG’s opening calls suggest that the Footsie will start trading 0.04 percent higher at 7,613 points. In the US, shares rose last night with weaker-than-expected economic data fuelling expectations for a  Fed rate cut.

“As you look around the globe, general business indicators are showing some slowing and it seems like now we’re starting to see a bit of slowing in the United States,” said Scott Colyer, chief investment officer at Advisors Asset Management, as quoted by CNBC. But “in this recovery we have a very involved central bank, and really global central banks, applying quantitative easing.” Asian shares meanwhile have been mixed this morning.

In the UK, the Footsie extended this week’s rally, adding 0.66 percent to close at 7,609.32 points. In individual movers, J Sainsbury (LON:SBRY) underperformed the market, giving up 0.53 percent, as investors digested the grocer’s first-quarter results which revealed a fall in sales and a cautious outlook.

Thursday’s agenda

Today’s macroeconomic releases include eurozone retail sales data for May, due out at 10:00 BST. The US market will be closed today for Independence Day. On the corporate front, FTSE 100 reporting will pick up with Primark owner AB Foods (LON:ABF) and blue-chip housebuilder Persimmon (LON:PSN).

Footsie companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include Aveva (LON:AVV), International Consolidated Airlines Group (LON:IAG), Next (LON:NXT) and Coca-Cola HBC (LON:CCH). Reuters’ calculations suggest that ex-divs will knock 5.3 points off the benchmark index.

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