The UK benchmark index looks set to open higher this morning, benefitting from an upbeat lead from the US. At home, Tesco’s (LON:TSCO) results will be in focus on the corporate front today.
FTSE 100 looking up
IG’s opening calls suggest that the Footsie will start the session 0.11 percent higher at 7,483 points. The blue-chip index is likely to take cues from the US where shares rose last night on the back of global trade optimism after the US, Canada and Mexico agreed a trade deal.
“The market reaction suggests investors are less worried about a trade war,” said Jennifer Ellison, principal at BOS, as quoted by CNBC. “It’s more of a sigh of relief.” Asian shares have climbed higher this morning, further benefitting from a report in Corriere della Sera that Italy will cut its budget deficit at a faster rate than expected.
“The big market mover in the last 24 hours has been Italy and the concerns around its debt so the latest news is being considered a much better outcome than was priced into the market,” said Kyle Roda, Melbourne-based analyst at IG, as quoted by Reuters. “The news has prompted some buying, we’re seeing a bit of a relief rally.”
In the UK, the Footsie fell in the previous session, giving up 21.12 points to close 0.28 percent lower at 7,474.55, despite the positive trade news from North America.
Today’s macroeconomic releases include the UK services purchasing managers’ index (PMI) for September, due out at 09:30 BST. IG reports that the index is forecast to have fallen to 53.8, from 54.8. In the US, the ADP report for September will be announced at 13:15 BST, to be followed by the ISM non-manufacturing PMI for the same month at 15:00 BST. In company releases, Tesco will update investors on its half-year performance this morning.