The FTSE 100 looks set to open higher this morning, recouping some of the previous session’s hefty losses, despite concerns over a trade war between the US and China. Rolls-Royce Holdings (LON:RR), which unveiled plans to slash jobs and said it expected to surpass its 2020 free cash flow target, will stay in focus today amid reports that it is developing a new electric engine.
Index looking up
IG’s opening calls suggest that the Footsie will start the session 0.17 percent higher at 7,674 points. Investors are likely to shrug off a downbeat lead from Asia where shares have lost ground this morning, pressured by the ongoing trade tension between the US and China.
“The on-again off-again possible global trade war is looking to be back on again as the U.S. and China announced tariffs on each other’s imports,” said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia, as quoted by Reuters. “This looks set to be the main theme that investors will focus on [...] with any further escalation in tension adding to the downside risk.” US shares closed lower on Friday, with investors eyeing the US-China trade relations.
In the UK, the Footsie tumbled on Friday, shedding 131.88 points to end the session 1.70 percent lower at 7,633.91.
Quiet Monday on the cards
There are no major macroeconomic releases out of Europe and the US to guide the market further today, and no blue-chips are scheduled to update investors on their results this morning. In corporate news, The Times reports that Rolls-Royce has filed a patent for a new breed of electric engine which could shape the future of air travel. The newspaper also reports that Centrica’s (LON:CNA) British Gas unit has been rebuked by the regulator for forcibly installing an unusually high number of pre-payment meters in homes.