The FTSE 100 index is expected to start positively on Monday reflecting firmer Asian markets, with the main focus on the pound following EU leaders’ approval at the weekend of UK prime minister Theresa May’s Brexit plan, although now she has a battle to get the deal through the UK Parliament.
Spread betting firm IG expects the blue-chip index to open around 25 points higher at 6,977, having shed 7.46 points on Friday.
Pre-weekend on Wall Street, the Dow Jones Industrials Average ended its post-Thanksgiving half-day session 178.74 points lower at 24,285 as the recent sell-off in tech stocks showed no signs of abating amid trade and growth worries.
But today in Asia, Japan’s Nikkei 225 index jumped 0.8% higher and Hong Kong’s Hang Seng index leapt 1.4% as traders looked ahead to the G20 summit, which starts later this week, with the US-China meetings sure to be the focus of dealers’ attention.
Asian markets were also encouraged by data from Adobe Analytics showing US Black Friday sales jumped by 23.6% to US$6.22bn – a record level.
On currency markets, sterling edged higher versus the dollar but remained flat against the euro as investors braced for the battle Theresa May now faces to get her EU-approved Brexit deal through Parliament with detractors increasing in her own party as well as the opposition.
Meanwhile, oil prices spiked higher after recent falls on worries over supply with tensions running high between Russia and Ukraine after the Russian navy opened fire and seized three Ukrainian ships in the Crimean peninsula at the weekend.
Slow corporate news day
On the corporate front, the final week of November brings a slowing in the flow of company announcements, with almost nothing on the agenda for Monday aside from a production update from blue chip miner and commodities trader Glencore PLC (LON:GLEN).
However, there will still be a steady flow of updates in the following four sessions including from the likes of blue-chip testing, inspection and certification firm Intertek Group PLC (LON:ITRK), as well as mid-cap holidays group Thomas Cook Group PLC (LON:TCG), soft drinks firm Britvic Plc (LON:BVIC) and utility Pennon Group plc (LON:PNN).
Significant announcements expected week on Monday:
Production report: Glencore PLC (Q3) (LON:GLEN)
Finals: Sanderson Group PLC (LON:SND)
Interims: Augmentum Fintech Plc (LON:AUGM), Cake Box Holdings PLC (LON:CBOX), D4t4 SolutionsPLC (LON:D4T4), Fusion Antibodies PLC (LON:FAB), Kainos Group PLC (LON:KNOS), Palace Capital Plc(LON:PCA), (LON:POLR), Sysgroup PLC (LON:SYS)
Economic data: German IFO business climate index; US Chicago Fed national activity index; US Dallas Fed manufacturing index
Around the markets:
- Sterling: US$1.2819, up 0.1%
- Gold: US$1,221.00, an ounce, unchanged
- Brent crude: US$60.13 a barrel, up 1.3%
- Theresa May will start a two-week campaign to hard sell the Brexit deal agreed by European leaders, as the UK prime minister faces an uphill battle at home to ratify the agreement – Financial Times
- Carlos Ghosn, the sacked Nissan chairman, has denied allegations of financial misconduct that led to his arrest. – Daily Telegraph
- Administrators of Phones 4u are set to assess whether to launch a damages claims worth hundreds of millions of pounds against mobile operators over their alleged role in the collapse of the retailer Daily Telegraph
- Mike Ashley is to shut all his stores in shopping centres owned by Intu Properties after the landlord’s refusal to accept his proposed new terms on four House of Fraser sites – Sunday Times
- RPC Group, the FTSE 250 packaging company, has come under attack from a short-seller Fraser Perring, who took on the disaster-hit South African retailer Steinhoff – Sunday Times
- Investment fund Crystal Amber has proposed that De La Rue make the company to focus more on its banknote security and authentication technologies – Sunday Times
- Shareholders are pushing Domino’s Pizza for a heavyweight non-executive director to challenge its chairman and chief executive more effectively – Sunday Times
- Johnston Press administrators have warned of a “significant shortfall” of cash for creditors – Weekend Financial Times
- Uber is planning a dramatic expansion of its US$8bn-a-year Uber Eats food-delivery service by tripling staff and broadening its footprint in Britain over the next year – Sunday Times
- China’s Tencent Music Entertainment is planning to list in New York next month despite the sell-off in technology shares – Weekend Financial Times
- The accountant BDO is set to merge with smaller rival Moore Stephens in a move to create a new challenger to the big four firms – Sunday Times
- Vauxhall is to cut 241 jobs at its Ellesmere Port car plant in a profitability drive – Weekend Financial Times
- An alliance of 27 brewers, retailers and other UK firms has launched a £100mln legal claim against a ‘cartel’ of European truck manufacturers – Mail on Sunday