The UK benchmark index looks set to open higher this morning, building on the previous session’s gains, as global sentiment remains upbeat amid receding concerns over North Korea and Hurricane Irma. In company news, Royal Dutch Shell (LON:RDSA) has inked a cooperation agreement with Petrobras to develop assets in Brazil.
IG’s opening calls suggest that the FTSE 100 will start the day 0.20 percent higher at 7,428 points. The blue-chip index is likely to take cues from the US, where stocks surged last night as damage from Hurricane Irma did not appear as bad as feared.
“We think Hurricane Irma could be a top five most costly hurricanes in the US, although the losses could be in-line-to-lower than market expectations,” Sarah DeWitt, an analyst at JPMorgan, said in a note, as quoted by CNBC. “Our sense is losses could be at the lower end of the range as the storm weakened faster than expected.”
Asian shares meanwhile have advanced this morning, as the United Nations Security Council unanimously stepped up sanctions against North Korea.
“The measures did not include an outright ban on oil supplies to the regime, so the threat of an immediate military confrontation appear to have eased for now,” Mutsumi Kagawa, chief global strategist at Rakuten Securities, told Reuters.
The FTSE 100 started the week on the front foot yesterday, as geopolitical tensions subsided, fuelling demand for riskier assets. The index added 35.99 points to close 0.49 percent higher at 7,413.59.
Today’s macroeconomic releases include the UK’s consumer price index for August due out at 09:30 BST and IG reports that the index is expected to have climbed to 2.5 percent year-on-year, from 2.6 percent in July. In company news, Shell and Petrobras have signed a deal to establish a long-term mutual collaboration in developing pre-salt fields in Brazil.