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FTSE 100 preview: Footsie to extend losses after US jobs report

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The FTSE 100 is expected to resume its slide this morning, with the stronger-than-expected jobs report on the other side of the Atlantic denting hopes for a rate cut. On the corporate front, British Airways owner International Consolidated Airlines Group (LON:IAG) is facing a hefty fine over customer data theft at the British flag carrier.

FTSE 100 seen lower

IG’s opening calls suggest that the Footsie will start trading 0.22 percent lower at 7,537 points this morning. The blue-chip index is likely to take cues from the US where shares fell on Friday following the non-farm payrolls data which surpassed analyst expectations and tempered expectations for a rate cut by the US central bank.

“The jobs number was solid,” said Gregory Faranello, head of US rates at Amerivet Securities, as quoted by CNBC. “The real theme now will be shifting very quickly to what the number means in the context of what we’re pricing in for the Fed in July.” Asian shares have tracked the US lower this morning.

“We are lowering our exposure to global equities to the range we consider ‘underweight’,” Morgan Stanley’s London-based strategist Andrew Sheets said in a note, as quoted by Reuters. The previous range was ‘neutral’.

In the UK, the FTSE 100 fell in the previous session, giving up 50.44 points to end trading 0.66 percent lower at 7,553.14 as investors digested the US jobs report.

Monday’s calendar

Today’s macroeconomic updates include Germany’s trade balance for May, due out at 07:00 BST. In FTSE 100 company news, IAG has been informed by regulators that it is facing a £183-million fine over last year’s customer data theft at British Airways. Engineering and industrial software group Aveva (LON:AVV) is set to hold its annual general meeting later today. The company said that it would not provide a trading update.

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