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FTSE 100 preview: Index to extend losses as trade worries persist

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The FTSE 100 looks set to open lower this morning, extending the previous session’s losses, with investors continuing to focus on the ongoing trade tensions between the US and China. Next (LON:NXT) will be in focus today after updating investors on its performance.

Index seen lower

IG’s opening calls suggest that the FTSE 100 will start the session 0.18 percent lower at 7,450 points. The index is likely to take cues from the US where shares fell last night, as a 10-percent levy  on $200 billion worth of Chinese goods came into force. Asian shares meanwhile have been subdued this morning, tracking the US lower.

“Wall Street weakness amid the latest flare up in trade conflict concerns is a negative factor for equities. Some markets, like Japan’s, have positive factors to fall back on like the weaker yen, but such support could be negated if the Chinese market is hit by volatility,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo, as quoted by Reuters.

At home, the Footsie fell yesterday, giving up 31.82 points to end the session 0.42 percent lower at 7,458.41, pressured by the intensifying trade tensions between Washington and Beijing. Sky (LON:SKY) and Randgold Resources (LON:RRS), however, rallied 8.61 percent and 6.03 percent, respectively, lifted by merger news.

Tuesday’s agenda

There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the Conference Board consumer confidence index for September will be announced at 15:00 BST. On the corporate front, Next has posted its half-year results. Tobacco maker Imperial Brands (LON:IMB) has released a trading update, while peer British American Tobacco (LON:BATS) has appointed an insider as its new chief executive.

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