The FTSE 100 looks set to open higher this morning, with investors shrugging off the escalating trade tensions between the US and China which have been weighing on global investor sentiment this week. BT Group (LON:BT.A) will be in focus today amid prospects for a shareholder revolt over its move to choose KPMG as its new auditor.
Footsie looking up
IG’s opening calls suggest that the UK benchmark index will start the session 0.80 percent higher at 7,665 points. The blue-chip index is likely to take cues from Asia where shares have started recovering this morning. China, however, has underperformed the region amid prospects of a full-blown trade war with the US. Stocks in the US meanwhile fell last night.
“With each escalation, you get more worried that things will get out of hand,” said Bob Phillips, managing principal at Spectrum Management Group. “I know Trump wants to do something to help out blue-collar workers, but [...] each time you ratchet this up, China has to come out strong.”
In the UK, the Footsie slipped lower yesterday, shedding 27.48 points to close 0.36 percent in the red at 7,603.85, pressured by the ongoing trade tensions between the US and China.
The European Central Bank’s Central Bank Forum in Portugal starts today and investors will eye speeches by ECB President Mario Draghi, Bank of Japan Governor Haruhiko Kuroda and Fed Chair Jerome Powell. In the US, the nation’s existing home sales for May will be announced at 15:00 BST.
In company news, The Times reports that BT is braced for a shareholder revolt over the choice of KPMG as its new auditor after damning reports about the Big Four accountancy firm.