The UK benchmark index looks set to start the week on the front foot, with attention turning to Brussels, where Britain is set to start its negotiations to leave the European Union. J Sainsbury (LON:SBRY) will in in focus on the corporate front today amid reports that the company is in talks to buy convenience store operator Nisa.
IG’s opening calls suggest that the FTSE 100 will start the session 0.64 percent higher at 7,511 points. Reuters reports that Brexit Secretary David Davis is set to start negotiations in Brussels today, that will set the terms on which Britain leaves the EU. The discussions will come less than two weeks after Prime Minister Theresa May’s Conservative Party lost its majority in Parliament following a snap general election. Travel stocks meanwhile are expected to come under pressure, following news that a vehicle drove into a crowd of people in London.
US stocks closed marginally higher on Friday, following news that e-commerce giant Amazon is set to buy Whole Foods for nearly $14 billion, with the move pressuring retailers. Asian shares meanwhile have gained ground this morning, holding steady ahead of the upcoming Brexit talks.
At home, the Footsie added 44.18 points on Friday to close 0.60 percent higher at 7,463.54, recovering some ground following the previous session’s selloff after the Bank of England voted five to three to keep rates unchanged, a move interpreted as hawkish.
There are no major macroeconomic releases out of Europe this morning and no blue-chips are scheduled to update investors on their recent performance. In company news, The Sunday Times report that Sainsbury’s is closing in on a takeover of Nisa Retail, having reportedly won a bidding war with the Co-operative Group.