The FTSE 100 looks set to open deep in the red in London this morning, extending the previous session’s hefty losses, pressured by the ongoing global selloff. BT Group (LON:BT.A) will be in focus today as it has unveiled plans to remove Huawei equipment from areas of its 4G network.
Selloff to continue
IG’s opening calls suggest that the Footsie will open 0.93 percent lower at 6,858 points. US stock futures and Asian shares have fallen this morning after Canadian authorities arrested a top Huawei executive, with the move adding to trade worries.
“The US has been telling its allies not to use Huawei products for security reasons and is likely to continue to put pressure on its allies,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, as quoted by Reuters. “So while there was a brief moment of optimism after the weekend US-China talks but the reality is, it won’t be that easy.”
The New York Stock Exchange, the Nasdaq and the US Treasury market were all closed yesterday for a national day of mourning for former President George H.W. Bush.
At home, the Footsie suffered a hefty fall yesterday, giving up 100.92 points to close 1.44 percent lower at 6,921.84, pressured by Brexit concerns as well as bond market worries on the other side of the Atlantic.
Today’s macroeconomic releases include the US trade balance for October, due out at 13:30 GMT. On the corporate front, Legal & General (LON:LGEN) is scheduled to post results this morning. In corporate developments, BT has confirmed a report in the Financial Times that it is removing Huawei equipment from the core of its existing 3G and 4G networks amid security concerns.
Next (LON:NXT) and Royal Mail (LON:RMG) are the blue-chips, whose shares will be trading without the attraction of their latest dividend in today’s session. Reuters’ calculations suggest that ex-divs will knock 0.57 points off the index.