gHello. The FTSE 100 is expected to open lower today, losing around 0.37% after posting its best weekly gain since June last week. Asian stocks surged higher overnight, but suffered from a sharp drop in gold and oil prices and weak Chinese trade data. Meanwhile, Europe is expected to get out of control when trading begins this morning as traders brace for the slowdown in German trade figures.
Investors appear to be concerned that the slowdown in Chinese trade, possibly followed by a slowdown in Germany, shows that the delta variant epidemic is interrupting the global recovery.
“While we have seen some return of optimism in the US labor market and the US economy, concerns are growing over the Chinese economy which has shown worrying signs of weakness in recent weeks, amid reports of growing epidemics of delta variant cases that have reportedly caused lockdowns in various parts of the country, ”said Michael Hewson of CMC Markets.
5 things to start your day
1) Marlboro Maker Becomes Hostile in Battle for Vectura: Philip Morris International increases its bid to 165p per share for Vectura after private equity firm Carlyle increased its bid to 155p on Friday.
2) Timeline for EDF’s decision on the £ 20 billion Sizewell C slips: The energy giant must now make a final decision no earlier than the end of 2022 amid funding questions.
3) Hard blow for Oxford Nanopore after ministers terminate Covid contract: The vaccine rollout ends the biotech company’s need for testing, which was considered a “life-saving innovation” by former Health Secretary Matt Hancock.
4) Workers ignore Chancellor’s ‘back to office’ call: New data shows no rush to return to the workplace despite the lifting of advice on working from home when restrictions ended on July 19.
5) Amigo uses advisers to liquidate the lender: Specialists from PJT Partners have been appointed if the subprime lender is unable to resume operations.
What happened during the night
Asian stocks faltered on Monday amid steep losses in gold and oil prices, while the dollar hit four-month highs against the euro after a bullish US jobs report pushed up bond yields.
Sentiment was shaken by a sudden drop in gold as a breakout of $ 1,750 triggered stop loss sales to bring it down to $ 1,684 an ounce. It was last down 1.4 pc at $ 1,738.
Brent also fell 2%, fearing the spread of the delta variant would dampen travel demand.
The holidays in Tokyo and Singapore created difficult trading conditions, leaving the largest MSCI Asia-Pacific stock index outside of Japan down 0.5 percent.
Japan’s Nikkei was closed but futures were trading 100 points below Friday’s close. Nasdaq futures slipped 0.4% and S&P 500 futures slipped 0.3%.
Chinese trade data released over the weekend beat expectations, while figures released on Monday showed inflation had slowed to 1% in July, offering no obstacle to further stimulus.
The Chinese blue chip index was a bit firmer.
Company : Hargreaves Lansdown (full year); Clarkson, TI Fluid Systems, PageGroup, H&T Group (interim)
Economy: BRC retail sales (UK), trade balance (Germany), consumer price index (China)