FTSE 100 preview: Index seen lower as US and Asia lose ground

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FTSE 100 preview: Index seen lower as US and Asia lose ground

By: Alice Young

The FTSE 100 looks set to open lower this morning, following downbeat leads from the US and Asia where shares retreated on the back of persisting trade worries. On the corporate front, J Sainsbury (LON:SBRY) is scheduled to update investors on its first-quarter performance this morning.

Footsie seen lower

IG’s opening calls suggest that the UK

benchmark index will start the session 0.19 percent lower at 7,579. In the US, shares fell last night, with the tensions between the US and China continuing to stay in focus.

“In the scheme of things, trade talks are getting worse,” said Peter Cardillo, chief market economist at Spartan Capital Securities, as quoted by CNBC. “So any rally we have is going to be capped.” Asian shares meanwhile have been subdued this morning, with the US set to introduce tariffs on Chinese goods worth around $34 billion on Friday. The move is expected to trigger a similar response from Beijing.

In the UK, the Footsie added 45.44 points to end the session 0.60 percent higher at 7,593.29, recouping some of Monday’s losses with investors shrugging off the ongoing US-China trade tensions.

Wednesday’s calendar

Today’s macroeconomic releases include the UK services purchasing managers’ index for June, due out at 09:30 BST. IG reports that the index is expected to have fallen to 53 last month, from 54. US markets will be closed for Independence Day.

On the corporate front, Sainsbury’s will post its first-quarter results this morning. In other news, Reuters reports that the London Stock Exchange Group (LON:LSE) has said that it has applied for several trading and trade reporting licences so that it can continue to serve customers in the European Union if the UK leaves the bloc without a deal.

Source: http://invezz.com/news/equities/31342-FTSE-100-preview-Index-seen-lower-as-US-and-Asia-lose-ground-