FTSE 100 preview: Index to end losing streak as Asian shares rise

The FTSE 100 looks set to open higher this morning, ending a three-day losing streak, with sentiment in Asia starting to recover. BT Group (LON:BT.A) will be one of the blue-chip companies in focus today amid reports it has won a licence to service Chinese consumers directly.

Footsie seen steady

IG’s opening calls suggest that the UK benchmark index will start trading 0.12 percent higher at 6,827 points. The FTSE 100 is likely to take cues from Asia, where shares have climbed higher this Friday, boosted by gains in the US tech sector. Shares stateside, however, were mixed last night amid ongoing concerns over Washington’s trade relations with Beijing.

“Equities may be drawing some support but the markets are bracing for next week’s events,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, as quoted by Reuters. “The US-China trade discussions will provide insight into how talks are progressing, while the British parliamentary voting is a key Brexit event. And there is also the FOMC (Federal Open Market Committee) meeting.”

At home, the Footsie extended the previous sessions’ losses, giving up 23.93 points to close 0.35 percent lower at 6,818.95, pressured by global growth and Brexit worries. The European Central Bank meanwhile held rates unchanged, in line with expectations.

Friday’s releases

Today’s macroeconomic statements include Germany’s Ifo business climate index for January, due out at 09:00 GMT. On the corporate front, investors will await Vodafone’s (LON:VOD) update. In other news, The Times reports that former telecoms monopoly BT has become the first international group to receive two national telecoms licences from China’s Ministry of Industry and Information Technology which will enable it to sell services direct to Chinese customers.