FTSE 100 preview: Uptrend to continue after strong US lead

The FTSE 100 looks set to open higher this morning, building on the previous sessions’ gains, following a strong lead from the US. On the corporate front, investors will eye updates by BP (LON:BP) and Ocado (LON:OCDO).

Footsie seen higher

IG’s opening calls suggest that the UK benchmark index will start trading 0.45 percent higher at 7,066 points. The Footsie is likely to take cues from the US where shares rose last night, led higher by the tech sector amid the ongoing earnings season and following last week’s better-than-expected jobs data.

“When I think about this earnings season, it’s more average and OK than what we’ve seen over the past three quarters,” said Lindsey Bell, investment strategist at CFRA. “This quarter is more of what you typically see in an average quarter.” Asian shares meanwhile have tracked the US higher this morning.

Hiroshi Nakamura, senior manager of investment planning at Mitsui Life Insurance, told Reuters that while financial markets’ positive reaction to the US data was diminishing with time, hopes for a US-China trade deal “will continue to support markets until the two sides come to formal decisions”.

At home, the FTSE 100 rose marginally in the previous session, adding 13.91 points to close 0.20 percent higher at 7,034.13, finding support in higher oil prices.

Tuesday’s releases

Today’s macroeconomic releases include the UK’s services purchasing managers’ index (PMI) for January, due out at 09:30 GMT, while the US non-manufacturing PMI for the same month will be announced at 15:00 GMT.

In company news, BP is set to update investors on its fourth-quarter performance, while at online grocer Ocado, investors will be looking out for information about a potential deal with Marks & Spencer Group (LON:MKS).