FTSE 100 set to make gains, with borrowing in focus
he FTSE 100 is called to open higher on Wednesday morning, but still expected to remain below the 7000 mark.
Yesterday saw London’s blue chip index recoup some of Monday’s losses when ‘freedom day’ was partly overshadowed by the so-called ‘pingdemic’ disrupting some firms, and rising virus concerns. It closed yesterday 0.5% higher, or 36.74 points, at 6,881.13.
Today CMC Markets traders expected the FTSE 100 to open 9 points higher at 6,890.
Looking ahead at UK borrowing this morning, Michael Hewson, chief markets analyst at CMC Markets said: “Having seen the UK economy post its biggest annual post war deficit of over £300bn in the last tax year, 2021 started the same way it finished the last, as April public sector borrowing came in at an adjusted £28.3bn, and an 8-month high.”
He added: “As we look to today’s June numbers it’s likely that we’ll see a further improvement to £21.5bn, which again would be lower than the same time a year ago, while tax receipts are also likely to be higher with more businesses open, albeit operating at a lower rate of activity.”
Elsewhere today, more shareholders could possibly put Morrisons in the shopping basket on hopes a bidding war is still in sight for the FTSE 250 grocer.
Yesterday investment giant Apollo ruled itself out from making a standalone offer, but said it is in talks to possibly support the Fortress-led proposal that has been recommended by Morrisons’ directors.
Today The Times reports that Clayton, Dubilier & Rice, which saw a proposal rejected in June, is working on a another bid. The report said it is understood to be lining up a financing package for a offer with JP Morgan, Goldman Sachs and BNP Paribas.
Meanwhile, updates are due this morning from companies including Royal Mail.