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FTSE 100 preview: Index seen lower after Trump’s latest comments

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The FTSE 100 looks set to open lower this morning, pressured by the latest comments by US President Donald Trump over the country’s trade relations with China. Marks & Spencer Group’s (LON:MKS) full-year results will be one of the highlights on the corporate front today.

Index to open lower

IG’s opening calls suggest that UK’s benchmark index will start the session 0.25 percent in the red at 7,858 points. The Footsie is likely to take cues from the US, where shares fell after President Trump told reporters he was ‘not satisfied’ with trade talks held with China and further cast doubts over his upcoming summit with North Korea’s leader Kim Jong Un.

“There’s a lot of uncertainty right now and that's reflected in the tight trading band we’ve been in for the past few months,” said Jennifer Ellison, principal at Bingham, Osborn & Scarborough, as quoted by CNBC. Asian shares meanwhile have tracked the US lower this morning.

At home, the Footsie rose yesterday, building on Monday’s gains, adding 18.28 points to close 0.23 percent higher at 7,877.45.

Wednesday’s calendar

Investors have a lot to look forward to on the macroeconomic front this morning, with flash manufacturing and services purchasing managers’ indices (PMIs) for May for France, Germany and the eurozone due out between 08:00 BST and 09:00 BST, to be followed by the UK’s consumer price index for April at 09:30 BST. In the US, the nation’s flash manufacturing and services PMI for May will be announced at 14:45 BST, to be followed by new home sales data for April at 15:00 BST. The eurozone’s flash consumer confidence index for May is also due out at 15:00 BST. The minutes from the latest Fed meeting will be released at 19:00 BST, after the UK market closes.

In company releases, Marks & Spencer is expected to post a drop in profits when it updates investors on its full-year performance today, following its announcement to close more stores as it continues with its transformation programme. Water utility Severn Trent (LON:SVT) also reports today.

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