FTSE 100 preview: Index seen higher amid new PM expectations
The FTSE 100 looks set to open higher this morning, amid the ongoing earnings season and with investors awaiting news over the UK’s new prime minister. BHP Group (LON:BHP) will be in focus today amid reports that investors are pushing for management changes.
FTSE 100 seen higher
IG’s opening calls suggest that the Footsie will start trading 0.38 percent higher at 7,544 points. The UK political situation will be in focus today as Reuters reported that Boris Johnson is expected to be elected leader of Britain’s governing Conservative Party and the country’s next prime minister today.
In the US, shares rose last night, at the start of a busy reporting week.
“Earnings have been good so far. Companies are beating low expectations,” said Ryan Nauman, market strategist at Informa Financial Intelligence, as quoted by CNBC. “It is great to see companies beat expectations, but my enthusiasm is a bit muted because growth is still flat to negative.” Asian shares have tracked the US higher this morning.
In the UK, the FTSE 100 started the week little changed, gaining 6.23 points to end trading 0.08 percent higher at 7,514.93.
Today’s macroeconomic releases include flash eurozone consumer confidence data for July, due out at 15:00 BST. In the US, the nation’s existing home sales for June will be released at 15:00 BST. On the corporate front, Mondi (LON:MNDI) has posted a trading statement this morning.
In other FTSE 100 company news, Reuters reports that at least three institutional investors in Australia are pushing for BHP to consider external candidates to replace Andrew Mackenzie as new CEO. The Times meanwhile reports that BP (LON:BP) is to expand its Brazilian biofuels business by combining it with a larger rival in a move that it said would help the transition to lower-carbon energy.