Equities Indices

FTSE 100 preview: Steady start to September

The FTSE 100 looks set to start September trading marginally higher, holding steady in the face of the new US-China tariffs. On the corporate front, Berkeley Group (LON:BKG) is facing a shareholder revolt over executive pay.

FTSE 100 seen higher

IG’s opening calls suggest that the Footsie will start the first trading day of September 0.11 percent higher at 7,215 points. The blue-chip index is expected to show some resilience even with the US and China imposing tariffs on each other’s imports. In the US, stocks closed little changed on Friday.

“This is a collective ‘catch-your-breath’ type of day with low volumes,” said Willie Delwiche, investment strategist at Baird, as quoted by CNBC. “People are pausing […] waiting to see what next month and next week holds.” Asian shares meanwhile have been mixed this morning.

In the UK, the FTSE 100 ended the month on the front foot, gaining 0.32 percent to close at 7,207.18. Despite Friday’s rise, the index posted a hefty fall for the month, pressured by fears of recession and the ongoing US-China trade dispute.

“All-in-all, it emphasises once again that the US-China trade dispute and/or its resolution remains the only game in town for investors globally,” said Jeffrey Halley, senior market analyst, Asia Pacific at Oanda, commented, as quoted by Reuters.

Monday’s releases

September’s macroeconomic releases include Germany’s final manufacturing purchasing managers’ (PMI) index for August, due out at 08:55 BST. At home, the nation’s manufacturing PMI for last month will be announced at 09:30 BST and IG reports that the index is expected to have remained unchanged at 48, staying in contraction territory. The US market meanwhile will remain closed for Labour Day.

In FTSE 100 company news, The Times reports that Berkeley Group is facing a pay revolt this week, with influential shareholder groups calling for its policy to be voted down.

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