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FTSE 100 preview: Index to extend losses after US tech selloff

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The FTSE 100 looks set to start Thursday’s trading in negative territory amid ongoing global worries and a tech selloff in the US. GlaxoSmithKline (LON:GSK) will be in focus on the corporate front today amid reports that it is axing 650 jobs on the other side of the Atlantic.

Footsie seen higher

IG’s opening calls suggest that the UK benchmark index will start trading 0.12 percent lower at 7,374 points. Shares in the US fell last night pressured by a drop in the tech sector Twitter CEO Jack Dorsey and Facebook COO Sheryl Sandberg testified in front of Congress.

“When you have these corporate executives dragged to Congress, that makes the market more nervous,” said Robert Pavlik, chief investment strategist at SlateStone Wealth, as quoted by CNBC. Asian shares meanwhile have extended losses this morning amid prospects for more US sanctions on China.

In the UK, the FTSE 100 posted a hefty fall in the previous session, giving up 74.58 points to close one percent lower at 7,383.28, pressured by the ongoing trade tensions.

Thursday’s agenda

There are no major macroeconomic releases out of Europe to provide direction this morning. In the US, the ADP report for August will be announced at 13:15 BST, to be followed by the nation’s ISM non-manufacturing purchasing managers’ index for August at 15:00 BST. In company news, Reuters reports that GSK will cut 650 positions in the US in relation to a global restructuring program it announced in July.

Blue-chips, whose shares will be trading without the attraction of their latest dividend in today’s session, include Admiral (LON:ADM), Antofagasta (LON:ANTO), BHP Billiton (LON:BLT), CRH (LON:CRH), Glencore (LON:GLEN), Land Securities (LON:LAND), RSA Insurance (LON:RSA) and Shire (LON:SHP). Reuters’ calculations suggest that ex-divs will knock 9.24 points off the Footsie.

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