The FTSE 100 looks set to start the new week little changed, with investors mulling over the prospects for a rate cut by the Federal Reserve, along with political developments at home. In company news, Standard Chartered’s (LON:STAN) pay policies have been questioned by a parliamentary committee.
Muted start ahead
IG’s opening calls suggest that the FTSE 100 will start trading 0.01 percent higher at 7,509 points. In the US, shares fell on Friday, amid corporate reports and comments from a top Fed official.
“So far, there have been no surprises,” said Jeff Zipper, managing director of investments at US Bank Private Wealth Management, as quoted by CNBC. “Most of the times when the bar is set so low, the results are likely to be in line or slightly better.” Asian shares meanwhile have been trading lower this morning.
At home, Reuters reports that British finance minister Philip Hammond has said that he would resign if Boris Johnson became prime minister because he felt unable to support a leader happy to take the country out of the European Union without a deal.
In the UK, the FTSE 100 rose marginally in the previous session, inching 15.61 points higher to end trading 0.21 percent up at 7,508.70, finding support in hopes for a Fed rate cut.
There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the Chicago Fed national activity index for July will be unveiled at 13:30 BST. While there are no FTSE 100 company releases scheduled for today, investors will have a lot to look out for the rest of the week, including updates from ITV (LON:ITV), GSK (LON:GSK), Vodafone (LON:VOD), Unilever (LON:ULVR) and AstraZeneca (LON:AZN).
In other company news, Reuters reports that the head of the British parliament’s Work and Pensions Committee has written to the chair of Standard Chartered’s remuneration committee questioning the bank’s executive pension pay levels.