The UK benchmark index looks set to start the new week on the front foot, finding support in a strong lead from Asia. On the corporate front, online grocer Ocado (LON:OCDO) is reportedly looking for warehouses in an effort to expand.
FTSE 100 looking up
IG’s opening calls suggest that the Footsie will start trading 0.13 percent up at 7,059 points. The blue-chip index is likely to take cues from Asia where shares have advanced this morning on the back of stimulus hopes from China. Reuters reported that a central bank adviser had said in remarks published today that Beijing’s tax cuts next year could be worth more than one percent of gross domestic product. In the US, shares were mixed on Friday, as investors digested corporate results.
“The underpinnings of the economy are still in place and earnings are still good,” said Quincy Krosby, chief market strategist at Prudential Financial, as quoted by CNBC. “The market is not going to have an immediate recovery; it tends to bounce.” In the UK, the Footsie also advanced in the previous session, adding 22.81 points to close 0.32 percent higher at 7,049.80.
There are no major macroeconomic statements out of Europe to guide the market further this Monday. In the US, the Chicago Fed index for September is out at 13:30 BST. While no blue-chips are scheduled to post results today, this week will see the earnings season in full swing, including reports from Whitbread (LON:WTB), Barclays (LON:BARC), Lloyds (LON:LLOY), RBS (LON:RBS) and British Airways parent International Consolidated Airlines Group (LON:IAG). In other news, The Sunday Times reports that Ocado is hunting for two new distribution centres to capitalise on the surge in demand for online deliveries.