As of 12.09 BST the FTSE 100 was up +33.46 (0.44 per cent), rallying from its opening position of 7558.59. Much is being credited to the ‘strong showing’ in the mining sector, as reported by Reuters, and a more positive outlook on US-China trade negotiations which will be the most anticipated story of the week.
Trade talks continue to influence risk appetite
As reported by Reuters, LCG’s analyst Janet Lawler said: “Should we start to see signs of progress in trade negotiations between the two powers, risk appetite will improve. However, headlines to the contrary are likely to see renewed demand for the dollar and flows out of currencies such as the Aussie Dollar, the Pound and the Euro.”
Mining companies rise
Mining companies including BHP Billiton (BHP:LON) and Glencore have helped, with their prices all rising whilst NMC Healthcare is overperforming, up 153.19 (3,77%) at 4213.19 as of 12.22 BST. The private hospital provider, focussed primarily on the UAE, has reported a pre-tax profit which is up 20 per cent to USD 118.7 million.
As reported by Alliance News, NMC CEO Prasanth Manghat gave strong clue as to the future of expansion. He said: “We continue to expand into new geographies, with our footprint now spread across 17 countries….we have made substantial progress across all facets.” The success of new acquisitions is feted with the current confidence in future performance.
Outlook this week
On the whole, the outlook for this week looks a little brighter pending the start of the cautiously anticipated US/China trade talks on Wednesday, when Liao Min, vice president of finance, meets with US undersecretary for international affairs in Washington.