FTSE 100 preview: Index to extend gains amid US-China trade deal hopes

FTSE 100 preview: Index to extend gains amid US-China trade deal hopes

The UK benchmark index looks set to open higher this morning, building on the previous session’s gains, benefitting from hopes for a trade deal between the US and China, and with a drop in sterling set to prop up FTSE 100 stocks with international exposure. Vodafone (LON:VOD) will be in focus today as European regulators opened a full-scale probe on the telecoms giant’s acquisition of some Liberty Global assets.

Index to open higher

CNBC reports that the FTSE 100 is seen opening 58 points higher this morning, according to IG. The index is likely to take cues from Asia, where market sentiment has been upbeat after US President Donald Trump said in an interview with Reuters that talks were taking place with Beijing by phone and that he would not raise tariffs on Chinese imports until he was sure about a deal. US shares suffered another volatile session last night, with investors digesting the latest US-China trade developments.

The FTSE 100 rallied in the previous session, adding 85.40 points to close 1.27 percent higher at 6,806.94, with sentiment recovering after Prime Minister Theresa May cancelled this week’s parliamentary vote on her Brexit deal.

Wednesday’s releases

There are no major releases out of Europe this morning to provide further guidance to the market. On the other side of the Atlantic, the US consumer price index for November will be announced at 13:30 GMT.

In corporate releases, British American Tobacco (LON:BATS) is due to update investors on its performance. In other news, Reuters reports that EU antitrust regulators have opened a full-scale probe into Vodafone’s purchase of Liberty’s assets in Germany and east Europe, having found that the deal might damage competition in Germany and the Czech Republic.

By Alice Young
Alice joined the Invezz team after motherhood convinced her to make a career change from actuary-ing. She brings a forensic eye for detail developed through crunching numbers on underwriting satellite insurance and the like.
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