FTSE 100 preview: FTSE to open lower as trade talks resume

FTSE to open lower

IG opening calls predict the markets will start today on yet another drop, with the index set to open at 7548 – 0.24%. The fall comes after Trump’s criticism of the Federal Reserves weakened the dollar and strengthened the pound with the stronger pound bearing weight on the index. His comments raised eyebrows amongst investors, with CMC Markets chief markets analyst David Madden commenting that "It would appear that Mr Trump would like to keep the U.S. dollar a little on the weak side in order to remain competitive," as quoted in CNBC.

The overall loss comes in spite of significant gains being made in the European markets, (which have been storming ahead in light of US / CHINA trade talks despite cautionary warnings from some investors). At time of close yesterday, the Euro Stoxx 50 had gained 0.53%, ending on 3,411.66 (+17.99) the French CAC was up 0.57%, closing on 5,410 (+31) and the German DAX had risen by 0.45% ending on 12,386 (+55).

In the UK, whilst the FTSE 100 closed on a drop of 0.51% (ending at 7,552 ,(-39)), both the soft and hard commodity markets saw growth. Bolstered by strong summer sales, supermarkets were the biggest risers yesterday with Kingfisher Plc (LON:KGF) gaining almost 3% ending on 276.72 GBX +6.52 (2.41%) and WM Morrisons PLC (LON:MRW) gaining almost 2% closing on 268.05 GBX +4.25 (1.61%) as of market close (16:35 21st august). Likewise, both Centrica (LON:CNA) and United Utilities Group PLC (LON:UU) saw gains, ending on 145.50 and 745.40 respectively

Today’s releases

Whilst there are no major macroeconomic reports due from the UK, the US housing market has a big day ahead today, with the Mortgage Bankers Associate set to reveal the Mortgage applications data, and the National Association of Realtors releasing the Existing Home Sales data as well as the Existing Home Sales Change, both of which could generate some volatility for the USD. Meanwhile, British American Tobacco (LON:BAT) were yesterday’s biggest fallers, closing the market with a drop of over 2%, with the price being 4,122.50 GBX −100.00 (2.37%) at time of close.

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