The UK benchmark index looks set to open higher this morning, recouping some of the previous session’s losses prompted by escalating trade tensions between the US and China. Tesco (LON:TSCO) will be in focus today amid prospects for a hefty equal pay bill.
FTSE 100 to open higher
CNBC reports that the Footsie is seen opening 25 points higher at 7,615 points, according to IG. Investors are likely to shrug off a downbeat lead from the US where shares closed lower with the Trump administration unveiling new tariffs on Chinese goods.
“The sharp market reaction to last night’s announcement by the Trump administration [...] shows how sensitive markets remain to any tariff news,” Jeffrey Kleintop, chief global investment strategist at Charles Schwab, told CNBC. Asian shares meanwhile have climbed higher this morning.
“The retaliatory options available to China include boycotting American goods, sharply devaluing the yuan, and selling off U.S. Treasury holdings,” wrote Xiao Minjie, senior economist at SMBC Nikko Securities, as quoted by Reuters. “But we believe none of these moves are realistic or productive. The wisest move in our view is for China to accelerate the opening of its market rather than continue to trade blows with the United States.”
In the UK, the FTSE 100 tumbled in the previous session, with investors focusing on the trade tensions between the US and China. The Footsie gave up 100.08 points to end the session 1.30 percent lower at 7,591.96.
This Thursday’s macroeconomic releases include eurozone industrial production data for May, due out at 10:00 BST. In the US, the nation’s consumer price index for June will be released at 13:30 BST. There are no blue-chips scheduled to update investors on their recent performance this morning.
Halma (LON:HLMA) is the only FTSE 100 company, whose shares will be trading without the attraction of their latest dividend in today’s session and Reuters’ calculations suggest that the effect will shave 0.13 points off the index. In company news, the Guardian reports that the number of Tesco shop workers taking part in a legal challenge to secure equal pay, which could lead to the supermarket paying out £4 billion, has swelled to 1,000.