The FTSE 100 looks set to open marginally higher this morning, with investors continuing to focus on the tax reform on the other side of the Atlantic. On the corporate front, London Stock Exchange Group (LON:LSE) will hold a shareholder meeting over the future of its chairman at the company.
Steady start ahead
IG’s opening calls suggest that the Footsie will start the session 0.04 percent higher at 7,540 points. US shares surged last night as investors eyed a vote on the long-awaited tax bill.
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“I think this is largely predicated on the belief that the tax plan is going to be passed tomorrow,” said Robert Pavlik, chief investment strategist at SlateStone Wealth, as quoted by CNBC. “With the belief that corporate taxes will go down, […] investors think the market is not too expensive.” Asian shares meanwhile have tracked the US higher this morning in anticipation of a US tax cut.
“While the markets have already priced in the corporate tax cut for the most part, it does provide an advantage for US corporations,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, told Reuters. “The rising trend in broader equities led by the US markets looks to continue for a while.”
In the UK, the FTSE 100 rose yesterday, finding support in optimism over the US tax reform. The blue-chip index added 46.44 points to end the session 0.62 percent higher at 7,537.01.
Today’s macroeconomic releases include the German IFO business climate index for December, due out at 09:00 GMT, while in the US, the nation’s US housing starts and business permits numbers for November are scheduled to be released at 13:30 GMT.
On the corporate front, Carnival (LON:CCL) will update investors on its performance this morning. London Stock Exchange shareholders meanwhile will decide whether the company’s chairman Donald Brydon should be removed. Brydon, however, is expected to survive the attempt to oust him.