Markets

What you need to know before the open

Today's top story: Donald Trump pulls US out of landmark Iran nuclear agreement

Debate: Would a citizens inheritance of £10,000 to 25 year olds help tackle intergenerational inequality?

After US President Donald Trump decided to pull the US out of a landmark nuclear deal last night, US equities generally shrugged off the news.

There was a slight jolt to the oil markets, as Brent crude rose to hover above $76.50. "With Venezuela still firmly in crisis and now Iran potentially facing sanctions, we could easily find that plus $70 per barrel becomes the new norm in a market which has already been tightened by OPEC," said LCG's Jasper Lawler.

Trump's decision encouraged a brief flight into safe haven currencies, although the dollar remains strong ahead of this week's Bank of England interest rate decision.

Asian markets were mostly down as all eyes remained on Trump. Only Hong Kong's HSI had made gains at the time of writing.

Meanwhile the European markets are set to provide a lacklustre open, according to financial bookmakers. LCG is calling the FTSE 100 to open four points higher at 7569, with the German Dax set to open 10 points up and France's CAC 40 two points down.

Corporate news

  • JD Wetherspoon – in a trading update this morning, the pub chain will be under scrutiny to see if its cautious March guidance will match up to actual performance (though it won't be shouting about it on social media).
  • Greggs – the bakery will be updating investors after its CEO said 2018 would be the peak year for investment.
  • Imperial Brands – one of the blue chip companies to report today, the cigarette maker is unlikely to impress according to analysts.
  • Tui – the holiday operator is expected to report strong half-year results.
  • Provident Financial – the troubled doorstep lender will release a trading update.

Data

  • 00.01 – British Retail Consortium like-for-like retail sales (April)
  • 13.30 – US Producer Price Index (April)

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