The FTSE 100 is expected to open lower on Wednesday as investors begin a new month and quarter cautiously ahead of a wave of manufacturing PMI reports.
Futures indicate London’s blue-chip index will open down 26.3 points, or 0.3%, at 10,470.82. The FTSE 100 closed up 12.90 points, or 0.1%, at 10,497.12 on Tuesday.
Sterling softened in early trade. The pound was quoted at USD1.3245 on Wednesday morning, down from USD1.3263 at the London equities close on Tuesday. Against the euro, sterling eased to EUR1.1603 from EUR1.1614.
The euro slipped to USD1.1409 from USD1.1419, while the dollar firmed against the yen to JPY162.69 from JPY162.60.
Oil prices edged higher as investors monitored developments in the Middle East. Iran said it would meet Qatari mediators on Wednesday to discuss negotiations with the US, although Tehran contradicted President Donald Trump’s claim that direct talks would take place.
Brent crude was trading at USD73.10 a barrel on Wednesday morning, slightly higher than USD73.04 late Tuesday.
In the US on Tuesday, Wall Street ended higher. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.8%, and the Nasdaq Composite advanced 1.5%.
Asian markets were mixed on Wednesday. Tokyo’s Nikkei 225 rose 0.8% after Japan’s manufacturing activity strengthened in June. The Japan manufacturing PMI increased to 54.8 from 54.5 in May, slightly below the flash reading of 54.9.
In China, the Shanghai Composite was 0.5% higher, while Australia’s S&P/ASX 200 fell 0.7%. Financial markets in Hong Kong were closed.
In corporate news, Nike struck a cautious tone despite fourth-quarter sales and earnings beating forecasts.
Gold weakened to USD3,974.08 an ounce early Wednesday from USD4,032.83 late Tuesday.
Wednesday’s global economic calendar includes manufacturing PMI reports, eurozone inflation data and the ADP private payrolls report in the US.
On the UK corporate calendar, investors will watch trading updates from Primark owner Associated British Foods and retailer Topps Tiles.
