The FTSE 100 is expected to open lower this morning, with investors staying in wait-and-see mode ahead of a key meeting between US President Donald Trump and Chinese President Xi Jinping this week. Royal Dutch Shell (LON:RDSA) will be in focus on the corporate front, amid reports that it is pursuing an acquisition of a Dutch energy company.
FTSE 100 seen lower
IG’s opening calls suggest that the Footsie will start trading 0.30 percent in the red at 7,395 points. In the US, shares were steady last night ahead of the G-20 summit set to start on Friday in Osaka, Japan.
“What we probably see is them having talks to have talks about trade. Perhaps the market is OK with that, but our feeling is the rhetoric we’re getting out of China — and Chinese media, in particular — has become much more hard-lined,” said Mona Mahajan, US investment strategist at AllianzGI, as quoted by CNBC. “It feels like the likelihood of them coming together for a deal is pretty de minimis at this point. But the idea that the whole thing doesn’t collapse is, I guess, a positive for the market.” Asian shares meanwhile have slipped in afternoon trade this Tuesday.
In the UK, the Footsie closed marginally higher in the previous session, adding 9.19 points to end trading 0.12 percent higher at 7,416.69, with sentiment staying mildly positive in the run-up to the G-20 summit this week.
“I think global markets generally are in a bit of a holding pattern ahead of all-critical G20 meeting,” Raymond James analyst Chris Bailey said, as quoted by Reuters.
There are no major macroeconomic releases out of Europe to guide the market further this morning. In the US, the nation’s new home sales numbers for May are due out at 15:00 BST. In FTSE 100 company news, Reuters reports that a domestic consortium set up by Shell and pension fund manager PGGM has taken a bigger lead in the race for Dutch energy company Eneco as two other contenders have dropped out.