The UK benchmark index looks set to start the last trading day of the week on the front foot, building on the previous session’s gains, following strong leads from the US and Asia, with investors reacting positively to the lack of response by China to the US’ latest tariffs. In company news, investors will eye an update from credit checking group Experian (LON:EXPN).
Index looking up
IG’s opening calls suggest that the FTSE 100 will start the session 0.54 percent higher at 7,692 points. The blue-chip index is likely to take cues from the US where shares rose last night, led by the tech sector, with investors eyeing the upcoming earnings season.
Eric Freedman, chief investment officer at US Bank Wealth Management, further told CNBC that the lack of an immediate response by China to the latest news of US tariffs was a positive for the market. He also noted that, while these tariffs are aimed at several Chinese imports, “the mixture of goods is different from that of the first round of tariffs. Also, they don’t come into effect until August”. Asian shares meanwhile have tracked the US higher this morning.
In the UK, the FTSE 100 rose in the previous session, adding 59.37 points to end the session 0.78 percent higher at 7,651.33, recouping some of Wednesday’s gains when the index slump on the back of the escalating trade war between the US and China.
There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the preliminary Michigan consumer confidence index for July is scheduled to be released at 15:00 BST. On the corporate front, Experian will update investors on its first-quarter performance.