The UK benchmark index has spiked in London in today’s session, boosted by hopes over the US-China trade relations. Retailers are also lending support to the FTSE 100 despite disappointing sales at Wm Morrison Supermarkets (LON:MRW).
FTSE 100 rallies
As of 13:39 GMT, the Footsie had gained 72.67 points to stand 1.07 percent higher at 6,883.55. Sentiment has been upbeat today amid the ongoing talks between the US and China. Reuters reports that investors have pinned hopes on a possible truce in the trade dispute as US Commerce Secretary Wilbur Ross said overnight that the world’s two biggest economies could reach a trade deal.
In Brexit developments, The Telegraph has reported that British and European officials are discussing the possibility of extending the formal exit process amid fears that a Brexit deal may not be completed by March 29.
Retailers in focus
Retailers have been mostly in demand in today’s session, following the latest Kantar Worldpanel data which showed that consumers had spent an extra £450 million on groceries in the 12 weeks ended December 30. Tesco (LON:TSCO), whose grocery sales rose 0.6 percent during the reported period, is currently trading 3.44 percent higher at 209.46p.
Morrisons, however, has bucked the trend after its latest trading update fell short of expectations. Proactive Investors quoted Richard Hunter, head of markets at interactive investor, as commenting that pressure remained on all sides, with “a resurgent Tesco, the proposed ASDA/Sainsbury alliance and the continuing advance of Aldi and Lidl” all adding to a challenging environment. Morrisons’ shares are 3.51 percent down at 211.95p.
The FTSE 100 was 1.16 percent down at 6,889.68 points as of 14:10 GMT on Tuesday, 08 January 2019.