The FTSE 100 looks poised for another sharp slide, extending the previous session’s hefty losses, with investors digesting the ongoing trade tensions between the US and China. On the corporate front, investors will digest HSBC Holdings’ (LON:HSBA) interim results
Index seen sharply lower
IG’s opening calls suggest that the FTSE 100 will start trading 1.15 percent lower at 7,322 points. In the US, shares fell on Friday as President Donald Trump flagged more tariffs on Chinese imports. Asian shares meanwhile have tracked the US lower this morning.
“Everything is selling off right now,” said Ray Attrill, head of forex strategy at National Australia Bank in Sydney, commented, as quoted by Reuters. “Our working assumption is that we are unlikely to see any meaningful resolution to the trade dispute anytime soon.”
At home, the FTSE 100 slumped on Friday, giving up 177.81 points to close 2.34 percent lower at 7,407.06, pressured by trade tensions.
Investors have a lot to look out for on the macroeconomic front this morning, starting with Germany’s final services purchasing managers’ index (PMI) for July, due out at 08:55 BST. In the UK, the nation’s services PMI for the same month will be announced at 09:30 BST and IG reports that the index is expected to have climbed to 51, from 50.2. In the US, the nation’s final services PMI for July and the non-manufacturing PMI for the same month will be announced at 15:00 BST.
On the corporate front, HSBC will conclude the FTSE 100 banking reporting season. The Asia-focused lender has further announced that its chief executive will be stepping down after just 18 months in the job In other FTSE 100 company news, Ocado (LON:OCDO) has announced the completion of its agreement with Marks & Spencer (LON:MKS), while WPP (LON:WPP) has unveiled changes to its business sector reporting structure.