Menu
Equities By Region Indices UK

FTSE 100 preview: Index seen lower with Brexit draft deal in focus

Share this article!

The UK benchmark index is expected to open lower this morning, following downbeat leads from the US and Asia, and with investors eyeing Britain’s draft divorce deal with the European Union. J Sainsbury (LON:SBRY) will be in focus today amid supplier comments over its proposed merger with Walmart’s Asda.

Index to open lower

IG’s opening calls suggest that the FTSE 100 will start trading 0.37 percent lower at 7,028 points. Brexit will be in focus today amid reports that the UK and the EU have reached a draft agreement. CNBC reports that Prime Minister Theresa May will meet with her cabinet to get her ministers on side.

In the US, shares last night, with energy the worst-performing sector as oil fell. Asian stocks have been mixed, pressured by the drop in crude prices.

“Oil prices have dropped sharply since peaking in early October as oversupply concerns have deepened,” Vivek Dhar, a mining and energy commodities analyst at Commonwealth Bank of Australia, said in a morning note, as quoted by CNBC.

In the UK, the FTSE 100 closed little changed yesterday, adding 0.68 percent to close 0.01 percent higher at 7,053.76, pressured by a stronger pound. The index, however, found support in heavyweight Vodafone (LON:VOD), whose shares surged 7.79 percent to 155.60p on the back of the telco’s interims.

Wednesday’s releases

Today’s macroeconomic statements include Germany’s flash third-quarter gross domestic product, due out at 07:00 GMT, to be followed by the UK’s consumer price index for October at 09:30 GMT. IG reports that prices are expected to have climbed 0.2 percent month-on-month and 2.6 percent year-on-year, as compared with 0.1 percent and 2.4 percent, respectively. The second estimate of the eurozone’s second-quarter GDP is out at 10:00 GMT, while in the US, the nation’s October CPI will be released at 13:30 GMT.

On the corporate front, British Land (LON:BLND), SSE (LON:SSE) and Smiths Group (LON:SMIN) are scheduled to update investors on their performance today. In other news, Reuters reports that an unidentified major supplier has said that Sainsbury’s proposed takeover of Asda would be ‘extremely detrimental’ to consumers.

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.