FTSE preview: Index looking up following preliminary trade deal agreement

A strong start is on the cards for the FTSE 100 this morning as a new trade deal between America and Mexico produces optimism.

FTSE preview: Index looking up following preliminary trade deal agreement

The UK benchmark index looks set for a positive start this morning with IG’s opening calls predicting the FTSE will open at 7626p, up +0.64 per cent.

European markets enjoy boost following US/Mexico trade deal

Following news from the US which saw Wall Street respond positively to the new trade deal between America and Mexico, a ripple of positivity seems to have echoed throughout the UK and European Markets. The European markets all experienced positives closes yesterday, with DAX (INDEXDB: DAX) being the big winner, closing with a market value of 12,538.31 (a rise of 143.79, up 1.16%). EUROSTOXX 50 (INDEXSTOXX: SX5E) also posted a positive close, with a rise of 30.34 to a final value of 3,457.78 (up 0.89%) US and Mexico reach new deal.

The  positivity in European investments comes on the heels of the preliminary trade agreement, the aim of which is to replace the existing NAFTA agreement. Trump has been questioning the fairness of the existing deal and the hope is that the new agreement will benefit both parties, moving forward. The market also appears optimistic about the potential future deal with Canada, with talks taking place this week, as well as the belief that the US is now putting pressure on Europe to speed up tariff talks.

Monday’s calendar

At the start of another quiet week on the FTSE, Bunzl (LON:BNZL) is due to release its interim report today. There have been ongoing questions with regards to Bunzl’s low yield and low growth, with the shares recently receiving neutral to sell ratings. Meanwhile, according to Reuters calculations, ex-dividend payments will take +0.6 of the market on Thursday, August 30th. The Intercontinental Hotel Group (LON:IHG) and St. James’ Place Plc (LON:STJ), with the former expected to have a market impact of +0.21 and the latter being +0.37.

Top Equities Brokers

0 Brokers added for comparison:
Clear all