The UK benchmark index looks set to open marginally higher this morning, with the trade dispute between the US and China staying firmly in focus. The FTSE 100 is set to recoup some of the losses posted in the previous session, with the spat hitting global markets.
Steady start ahead
CNBC reports that the FTSE 100 is seen opening 19 points higher at 7,524, according to IG. In the US, shares tumbled last night following reports that President Donald Trump was planning to block some Chinese companies from investing in US technology. Asian shares meanwhile have been subdued this morning.
“Unlike the seemingly spur-of-the-moment tweets by President Trump and retaliatory exchange of tariffs, Washington’s bid to protect intellectual property is an issue at the heart of a trade row between two powers battling for future global supremacy,” wrote Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities, as quoted by Reuters. The newswire also quoted Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management as pointing out that the ‘increasingly hawkish trade rhetoric’ employed by the US “could begin impacting the economy by cooling investor sentiment and curbing capital expenditure by corporations”.
The FTSE 100 tumbled in London yesterday, giving up 172.43 points to end the session 2.24 percent in the red at 7,509.84. Micro Focus (LON:MCRO) was one of the session’s biggest fallers in percentage terms, giving up 5.21 percent to 1,293.00p.
Today’s macroeconomic releases include the consumer confidence index for June, due out at 15:00 BST. There are no blue-chip scheduled to update investors on their performance this morning. BHP Billiton (LON:BLT) meanwhile has agreed a deal with Brazilian authorities to settle a lawsuit related to the Samarco dam burst in 2015.