FTSE 100 preview: Trade and Brexit worries to pressure Footsie

July 18, 2019 March 11, 2020

The FTSE 100 looks set to extend the previous session’s losses this Thursday, pressured by trade uncertainty and renewed Brexit concerns. On the corporate front, investors will digest a string of corporate releases as the earnings season kicked off this week.

FTSE 100 seen lower

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CNBC reports that according to IG index data, the Footsie is seen opening 17 points lower at 7,511. Sentiment is likely to be subdued today following a report in the Wall Street Journal yesterday which quoted sources with knowledge of the matter as saying that the trade negotiations between the US and China were in a standstill while the Trump administration determines how to address Beijing’s demands that it ease restrictions on Huawei. The report pressure US stocks last night and has weighed on Asian shares this morning.

Reuters meanwhile quoted Seema Shah, London-based chief strategist at Principal Global Investors, as commenting that risks of a no-deal Brexit had “increased to worryingly high levels,” and that “investors should be concerned”.

“In the scenario where a no-deal Brexit becomes a realistic prospect, the continued decline in sterling will be just a drop in the ocean,” the analyst pointed out.

In the UK, the FTSE 100 fell yesterday, giving up 41.74 points to end trading 0.55 percent lower at 7,535.46. Burberry (LON:BRBY) was again the top performer with a near three-percent gain, with the shares staying in demand in the wake of the company’s trading update earlier in the week.

Thursday’s releases

Today’s macroeconomic statements include UK retail sales data for June, due out at 09:30 BST. IG reports that sales are expected to have climbed 2.7 percent year-on-year and 0.4 percent month-on-month. On the corporate front, FTSE 100 companies reporting today include Anglo American (LON:AAL) and SSE (LON:SSE). In mid-cap releases, Royal Mail (LON:RMG) and easyJet (LON:EZJ) will also post trading updates. There are no Footsie companies going ex-dividend in today’s session.

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