FTSE 100 set to resist the pull of Asia as it heads for a flat start

The FTSE 100 looks set to resist the upward pull of Asia’s main markets to open flat.

Trade optimism floated most boats in China, Hong Kong and Japan, though the mood was dampened a little by Beijing’s cut for the first time in four years to the seven-day reverse purchase rate.

The surprise move to lower borrowing costs was seen as an economic support measure and, by extension, a tacit admission the world’s second largest economy is struggling as a result of US sanctions.

“The move sparked chatter about further stimulus from Beijing,” said David Madden, analyst at CMC Markets.

Closer to home, the pound was stronger on the foreign exchange markets as the Tories put some clear blue water between them and Labour in the polls.

Internationally, the prospect of Jeremy Corbyn government is being viewed with trepidation.

Looking ahead, it’s set to be another busy week of corporate news with updates from Royal Mail (), B&Q owner Kingfisher () and easyJet (), the budget airline, expected.

Around the markets: Pound worth US$1.2926 (+0.22%); gold US$1,465.70 an ounce, down US$2.80; Brent crude US$63.31, up 1 cent  

Business Headlines 

Financial Times

• Fierce clashes in Hong Kong as police lay siege to university
• Johnson to woo business with tax breaks worth £1bn
• hands control over auditor pay to non-execs
• Tata Steel set to announce deep restructuring

Times

• Saudis cut Aramco oil float price to $1.7trn
• If your suppliers cheat us we’ll fine you, says taxman
• Heathrow expansion: Decision day for airport’s third runway
• Ex-boss plots £125m deal to buy Eddie Stobart

Daily Telegraph

• HS2 ‘could save billions’ by scrapping Euston route
• Eddie Stobart just weeks from collapse
• PsiQuantu, a secretive US start-up founded using technology developed at the University of Bristol has raised £179mln

Guardian

• Labour to reform public appointments amid row over director
• Boris Johnson to pledge tax cuts for business in bid to ease Brexit fears
• Personal computer firm HP has rejected a takeover approach from printer maker , despite pressure from billionaire investor Carl Icahn to agree a merger

Monday’s Main Market News

Finals: Diploma ()

Interims: & Hill (), McKay Securities ()

Trading statements: DWF Group (LON:DWF)

Economic announcements: ECB Financial Stability Review, US house building confidence