The FTSE 100 looks set to open higher this morning, building on the previous session’s gains, despite the ongoing Brexit turmoil. On the corporate front, National Grid (LON:NG) will be in focus amid reports over potential penalties from the energy regulator.
Index seen steady
IG’s opening calls suggest that the FTSE 100 will start trading 0.08 percent higher at 7,288 points. The UK’s political turmoil will stay in focus today with MPs set to try to block Prime Minister Boris Johnson from pursuing a no-deal Brexit.
In Asia, shares have been subdued this morning, pressured by the ongoing US-China trade war, while the US market remained closed last night for Labour Day.
“We have so many problems around the world, starting from the U.S.-China trade war and Brexit,” Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management, commented, as quoted by Reuters. “But investors appear to be getting used to be exposed to them.”
At home, the Footsie started September on the front foot, gaining 74.76 points to end trading 1.04 percent higher at 7,281.94, finding support in a weaker pound. AstraZeneca (LON:AZN) was one of the session’s biggest risers, adding nearly three percent, as investors reacted positively to results from late-stage trials for two of the group’s cardiovascular treatments.
Today’s macroeconomic statements include the UK’s construction purchasing managers’ index (PMI) for August, due out at 09:30 BST. IG reports that the index is expected to have climbed to 45.9 from 45.3, while staying in contraction territory. In the US, the nation’s final manufacturing PMI for August is out at 14:45 BST, to be followed by the ISM manufacturing PMI for the same month at 15:00 BST.
In FTSE 100 company news, The Times reports that the UK’s worst blackouts in a decade have exposed disagreement between National Grid and the energy regulator over the maximum penalties it could face in the event of any wrongdoing.
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.