The UK benchmark index looks set to open lower this morning, with worries over global trade continuing to weigh on investor sentiment around the world. On the corporate front, FTSE 100 airlines are scheduled to post their August traffic statistics.
Index seen in the red
CNBC reports that the Footsie will open 17 points lower at 7,440, according to IG. The blue-chip index is likely to take cues from the US, where shares started September on the back foot following this week’s Labour Day, pressured by trade tensions with Canada and China. Shares in Asia have also tracked the US lower this morning.
“The US-Canada talks are due to resume today and this keeps trade issues at the forefront, with a wait-and-see mood prevailing in the equity markets,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, as quoted by Reuters.
At home, the Footsie fell in the previous session, giving up 46.74 points to close 0.62 percent lower at 7,457.86. WPP (LON:WPP) was the index’s biggest faller in percentage terms as investors digested the ad giant’s latest results which revealed a drop in profits.
Today’s macroeconomic statements include the UK services purchasing managers’ index for August, scheduled to be released at 09:30 BST. IG reports that the index is forecast to have climbed to 54.7, from 53.5. On the other side of the Atlantic, the US trade balance for July is due out at 13:30 BST, alongside Canada’s trade balance for the same month. The Bank of Canada rate decision meanwhile will be announced at 15:00 BST.
On the corporate front, Barratt Developments (LON:BDEV) is scheduled to update investors on its performance, while easyJet (LON:EZJ) and British Airways parent IAG (LON:IAG) will post passenger traffic statistics for August.