The UK benchmark index looks set to open marginally lower this morning, with investors awaiting a meeting between US President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Argentina later this week. Standard Chartered (LON:STAN) will be in focus today amid reports that it is considering simplifying its structure.
Muted start ahead
IG’s opening calls suggest that the Footsie will start Tuesday’s session 0.07 percent lower at 7,031 points. In the US, shares rallied last night, benefitting from a rebound in tech shares.
Asian shares meanwhile have traded mostly higher, with investors digesting comments by US President Donald Trump who said in an interview with the Wall Street Journal that he expects to move ahead with raising tariffs on $200 billion in Chinese imports from 10 percent to 25 percent. The comments come ahead of the G20 summit in Buenos Aires later this week.
“Trump’s pessimistic view on the chances of a game-changing China trade deal may puncture global equity markets’ optimistic start to the week,” said Sean Callow, a senior FX analyst at Westpac, as quoted by Reuters.
In the UK, the FTSE 100 kicked off the week with a rally, gaining 83.14 points to end the session 1.20 percent higher at 7,036.00, as investors digested the latest Brexit-related developments.
There are no major macroeconomic releases out of Europe to guide the market further this morning. In the US, the nation’s consumer confidence index for November will be announced at 15:00 GMT. On the corporate front, Intertek (LON:ITRK) has published a trading statement this morning. In other news, Bloomberg reports, citing sources, that StanChart is weighing a plan to simplify its structure as it looks to control costs.