FTSE 100 preview: Rally to continue after Brexit vote

on Jan 30, 2019
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The FTSE 100 looks set to open higher, extending gains, after the UK parliament backed a proposal for Prime Minister Theresa May to reopen negotiations with Brussels. Royal Bank of Scotland Group (LON:RBS) will be in focus today amid reports that a government agency had a role in the lender’s controversial Global Restructuring Group (GRG).

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Index to open higher

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IG’s opening calls suggest that the Footsie will start trading 0.45 percent higher at 6,865 points. Reuters reports that the blue-chip index is likely to find support in a weak pound after British lawmakers instructed Prime Minister Theresa May to reopen a Brexit treaty with the EU to replace a controversial Irish border arrangement, followed by a flat rejection from Brussels.

In the US, shares rose slightly last night, while Asian stocks have been mixed this morning with investors eyeing the US-China trade talks later today. At home, the FTSE 100 rallied in the previous session, gaining 86.83 points to close 1.29 percent higher at 6,833.93, as investors awaited the Brexit vote.

Wednesday’s releases

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Investors have a lot to look out for on the macroeconomic front, starting with Germany’s GfK consumer confidence index for February, due out at 07:00 GMT, to be followed by business confidence data for the eurozone for January at 10:00 GMT. The preliminary German consumer price index for January will be released at 13:00 GMT, while in the US, investors will eye the ADP employment report for January at 13:15 GMT and pending home sales data at 15:00 GMT. The Fed meeting decision will be announced at 19:00 GMT, after the UK market closes.

In other news, the BBC has revealed that the government’s Asset Protection Agency had influenced the strategy of RBS’ turnaround unit GRG, including decisions which determined business customers’ fortunes.

Royal Bank of Scotland Indices Stock Market