Equities By Region Indices UK

FTSE 100 preview: Index poised for higher start despite trade fears

Share this article!

The UK benchmark index looks set for a positive start this morning, taking cues from the US, despite the persisting trade war fears. J Sainsbury (LON:SBRY) will be in focus today amid reports that income fund managers have trimmed holdings in the supermarket amid Asda merger risks.

FTSE 100 to open higher

CNBC reports that according to IG, the Footsie is expected to open six points higher this morning. In the US, stocks rose last night, benefitting from a recovery in the tech sector, while Asian shares have been struggling to make headway this morning.

“Weakness is set to remain a recurring theme amid global trade tensions, a broadly stronger dollar and prospects of higher US interest rates,” Lukman Otunuga, a research analyst at broker FXTM, as quoted by Reuters. “With turmoil in Turkey and Argentina triggering contagion fears, appetite for emerging market assets and currencies is likely to continue diminishing.”

In the UK, the Footsie closed little changed yesterday, adding 1.60 points higher to end the session 0.02 percent up at 7,279.30, pressured by trade war fears and a rise in sterling, with the pound rising amid prospects for a Brexit deal.

Tuesday’s updates

Today’s macroeconomic statements include UK unemployment data at 09:30 BST. IG reports that claimant count is expected to have fallen by 6,200 last month, from a rise of 6,200 a month earlier, while the unemployment rate is expected to have climbed to 4.2 percent for July from four percent. Germany’s ZEW index for September meanwhile will be announced at 10:00 BST.

In company news, Citywire reports that managers of £3.8 billion JOHCM UK Equity Income fund have trimmed holding in Sainsbury's on risk of regulators rejecting Asda merger.

Add Comment

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.