The FTSE 100 index looks set to open lower this morning, extending the previous session’s losses, pressured by news that US lawmakers had called for an impeachment inquiry into President Donald Trump. J Sainsbury (LON:SBRY) will be in focus on the corporate front, with a trading update due out this morning.
Footsie to extend losses
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IG’s opening calls suggest that the FTSE 100 will start trading 0.30 percent lower at 7,270 points. The blue-chip index is likely to take cues from the US where shares retreated last night on news that House Speaker Nancy Pelosi will announce a formal impeachment inquiry. Asian shares have tracked the US lower this morning, with impeachment concerns adding to worries over the trade relations between Washington and Beijing.
“If an impeachment enquiry looks like ending his re-election chances in 2020, he may throw caution to the wind and harden his attitude to a China trade deal, increasing the chances of a global recession next year,” said Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA, as quoted by Reuters.
In the UK, the FTSE 100 retreated in the previous session, pressured by a rise in the pound following the historic Supreme Court decision that Prime Minister Boris Johnson had acted unlawfully by asking Queen Elizabeth to suspend parliament for five weeks. The blue-chip index shed 34.65 points to end trading 0.47 percent lower at 7,291.43. TUI Group (LON:TUI) was the session’s biggest riser in percentage terms, gaining 6.46 percent, as investors cheered its trading update.
There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the nation’s new home sales data for August will be announced at 15:00 BST. In FTSE 100 company releases, in addition to Sainsbury’s, investors will also eye updates from Untied Utilities (LON:UU) and Halma (LON:HAL).