FTSE 100 watch: Footsie extends gains amid US-China trade hopes

Taylor Wimpey share price rallies as housebuilder update on performance

FTSE 100 watch: Footsie extends gains amid US-China trade hopes

The UK benchmark index has jumped in London in today’s session, building on Tuesday’s gains, with investors digesting the trade talks between the US and China. In individual movers, shares in Taylor Wimpey (LON:TW) are outperforming the FTSE 100 as the blue-chip housebuilder posted a trading statement.

FTSE 100 extends rally

As of 12:38 GMT, the Footsie had added 72.53 points to stand 1.06 percent higher at 6,934.13. Risk-on sentiment has continued this Wednesday, amid the trade talks between Washington and Beijing. Reuters reported that a US trade delegation member had said “it’s been a good one for us” while the Chinese foreign ministry had said results of the negotiations will be released later.

“The US – China trade talks being extended into a third day is being interpreted by the markets as a sign of progress,” Jasper Lawler, head of research at London Capital Group, commented earlier today, as quoted by Proactive Investors. “A deal is likely to still be a long way off, with many twists and turns still to overcome along the way. However, the extension is a step in the right direction, sending a signal that the two sides are in serious negotiations and are working hard to resolve the issues.”

Individual Footsie movers

Taylor Wimpey has been one of the session’s most prominent risers after saying in a statement that the housing market had remained stable throughout 2018, and that the company had seen “good levels of demand, which converted into strong sales rates across the business”. Taylor Wimpey’s share price currently stands 6.77 percent higher at 149.90p.

J Sainsbury (LON:SBRY) meanwhile is 2.63 percent up at 273.50p despite reporting a fall in third-quarter sales.

The FTSE 100 was 0.90 percent up at 6,923.25 points as of 12:51 GMT on Wednesday, 09 January 2019.

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