The UK benchmark index has climbed higher in today’s session, with investors shrugging off a downbeat lead from Asia, where shares have been pressured by the ongoing trade worries, with the US and China expected to impose tariffs on one another tomorrow. In individual stock news, Associated British Foods (LON:ABF) has fallen to the bottom of the FTSE 100 leaderboard after updating investors on its quarterly performance this morning.
FTSE 100 steady ahead of tariffs
As of 13:18 BST, the Footsie had added 46.72 points to trade 0.62 percent higher at 7,619.81. The blue-chip index has steadied even with China and the US anticipated to hit each other with tariffs.
“Stocks have proceeded in fits and starts this week, mostly thanks to the US holiday, but the absence of a real bounce in Asian markets does lend strength to the bearish case”, said IG analyst Chris Beauchamp, referring to the US July 4 holiday, as quoted by Reuters.
Investors are also eyeing the minutes from the Federal Reserve’s latest policy meeting when the US central bank moved to hike the funds rate by 25 basis points.
“Fed Chairman Jerome Powell also sounded relatively upbeat when he held his subsequent press conference and reiterated that the US central bank was comfortable with inflation rising above the Fed’s 2% target,“ said David Morrison, senior market strategist at GKFX, as quoted by Proactive Investors.
Individual stock news
AB Foods’ shares have been sold off today after the company warned that it now expected sales and profit at its Sugar business to come in lower than previously forecast for both for this financial year and next. The group’s stock is 4.27 percent worse off at 2,601.00p.
Glencore (LON:GLEN) meanwhile is 3.08 percent up at 329.30p after surprising investors with news of a $1-billion share buyback.
The FTSE 100 was 0.50 percent up at 7,611.16 points as of 13:46 BST on Thursday, 05 July 2018.