FTSE 100 preview: Strong start ahead amid hopes for US-China trade deal

Barclays picks Rothschild veteran as its new chairman

FTSE 100 preview: Strong start ahead amid hopes for US-China trade deal

The UK benchmark index looks set to start trading higher this Friday, finding support in hopes for a trade deal between the US and China. Barclays (LON:BARC) will be in focus today amid news that it has appointed a new chairman.

Index looking up

IG’s opening calls suggest that the Footsie will start the last trading day of the week 1.11 percent higher at 7,194 points. The blue-chip index is likely to take cues from the US and Asia, where shares have advanced after President Donald Trump tweeted that he had “had a long and very good conversation” with Chinese President Xi Jinping on trade.

“It is positive that the two leaders are speaking,” said Jon Adams, investment strategist at BMO Global Asset Management, as quoted by CNBC. “We think shorter term we’ll have these tensions as a headwind for the market, but in the intermediate term we think a deal will get done.”

In the UK, the FTSE 100 started November little changed, giving up 13.44 points to close 0.19 percent lower at 7,114.66, as investors digested company releases, as well as the Bank of England’s decision to leave rates unchanged.

Today’s releases

This Friday’s macroeconomic statements include the UK construction purchasing managers’ index for October, due out at 09:30 GMT. In the US, the highly-anticipated monthly non-farm payrolls report is due out at 12:30 GMT and IG reports that payrolls are expected to have climbed to 189,000, from 134,000 in the prior month, while the unemployment rate is expected to have held steady at 3.7 percent. The nation’s trade balance for September is also due out at 12:30 GMT.

On the corporate front, Paddy Power Betfair (LON:PPB) reports today. In other news, Barclays has appointed Nigel Higgins, Deputy Chairman of Rothschild & Co, to succeed John McFarlane as chairman.

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