The FTSE 100 looks set to start the new week little changed, with investors digesting the newest economic data out of China. On the corporate front, GlaxoSmithKline (LON:GSK) is reportedly set to unveil a new chairman as it prepares to break up its business.
Muted start ahead
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IG’s opening calls suggest that the Footsie will start trading 0.03 percent lower at 7,504 points. In Asia, shares have been mixed this morning as data showed that China’s economic growth had slowed down in the second quarter of the year. The country’s industrial output and retail sales numbers, however, surpassed forecasts.
“Investors may be scaling back easing expectation upon today’s data as fiscal measures appear to be working,” said Westpac analyst Frances Cheung, as quoted by Reuters. In the US, shares jumped on Friday in the wake of Federal Reserve Chair Jerome Powell’s testimony.
“You can’t fight the Fed here,” said Michael Katz, partner at Seven Points Capital, as quoted by CNBC. “We have a strong bull market and we have a strong uptrend. As long as we’re heading higher, we’ve got to keep buying dips and not fight the trend.”
In the UK, the FTSE 100 ended Friday’s trading little changed on Friday, giving up 3.85 points to close 0.05 percent lower at 7,505.97.
There are no major macroeconomic releases out of Europe to guide the market this morning. On the other side of the Atlantic, the New York Empire State manufacturing index for July is scheduled to be released at 13:30 BST. While there are no blue-chips reporting today, the week will see results from Experian (LON:EXPN), Burberry (LON:BRBY), Rio Tinto (LON:RIO), BHP (LON:BHP), Severn Trent (LON:SVT), SSE (LON:SSE) and Anglo American (LON:AAL) as the earnings season picks up.
In other FTSE 100 company news, Sky News has revealed that GSK is set to appoint a senior boardroom figure at HSBC (LON:HSBA) as its new chairman as it prepares itself for a break-up.