FTSE 100 preview: Index to track Asia lower

FTSE 100 preview: Index to track Asia lower
Written by:
Tsveta van Son
10th September 2019
Updated: 11th March 2020

The FTSE 100 is expected to open lower this morning, with downbeat data out of China souring investor sentiment in Asia. In FTSE 100 company news, Barclays (LON:BARC) has followed peers Lloyds (LON:LLOY) and RBS (LON:RBS) in hiking its provisions for the payment protection insurance (PPI) scandal.

FTSE 100 seen lower

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IG’s opening calls suggest that the Footsie will start trading 0.17 percent lower at 7,223 points. The blue-chip index is likely to take cues from Asia where shares have retreated this morning, responding to data which showed that mainland China’s factory prices had shrunk at their fastest pace in three years.

“Globally inflationary pressure remains subdued, so in that sense China is not an outlier,” said Sean Darby, global equity strategist at Jefferies, as quoted by Reuters. “People are positioned very bearish, but I don’t think the market wants to be too bearish.”

In the US, shares were mixed last night, as investors mulled over the trade relations between Washington and Beijing.

“As long as we don’t have another tweetstorm around trade, I think the market can stay in the upper end of this range,” Art Hogan, chief market strategist at National Securities, commented, as quoted by CNBC.

At home, the FTSE 100 fell in the previous session, giving up 46.53 points to end trading 0.64 percent lower at 7,235.81 points, pressured by a rise in the pound and corporate releases.

Tuesday’s agenda

Today’s macroeconomic statements include employment data for the UK, due out at 09:30 BST. IG reports that August complaint count is expected to have fallen to 16,000 from 28,000, while the nation’s unemployment rate is expected to have held steady at 3.9 percent. On the corporate front, Ashtead (LON:AHT) is reporting its first-quarter results this morning.

In other FTSE 100 company news, Barclays will stay in focus as it updated investors on its PPI costs in the afternoon, as the London market closed.

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