The FTSE 100 looks set to open in positive territory this morning, following strong leads from the US and Asia, and with investors focusing on the ongoing earnings season. Tesco (LON:TSCO) will be in focus today amid plans to launch a discount chain.
FTSE 100 seen higher
IG’s opening calls suggest that Britain’s blue-chip index will start the session 0.39 percent higher at 7,686 points. The blue-chip index is likely to take cues from the US where tech stocks were in demand on the back of corporate updates.
“It’s early days for Q2 earnings season, but so far this is looking to be a very good reporting cycle,” Nicholas Colas, co-founder of DataTrek Research, said in a note yesterday, as quoted by CNBC.
“Ongoing earnings growth should support equities, but expect fallout for companies missing forecasts,” Jason Pride, chief investment officer at Glenmede, further told the newswire.
Asian shares meanwhile have advanced this morning, tracking the US higher. Reuters reported that Shanghai shares seemed to get a boost from news Beijing would adopt a more ‘vigorous’ fiscal policy, including company tax cuts.
In the UK, the FTSE 100 closed in negative territory, giving up 23 points to end the session 0.30 percent lower at 7,655.79, with investors focusing on the ongoing trade concerns.
Today’s macroeconomic calendar includes the flash July purchasing managers’ indices (PMIs) for France, Germany and the eurozone, due out between 08:00 BST and 09:00 BST. In the US, the nation’s flash manufacturing and services PMIs for July at 14:45 BST. In company developments, The Guardian and Mail on Sunday report that Tesco is on the verge of launching a discount chain which could challenge Aldi and Lidl.