FTSE 100 preview: Rally to pause after Trump address

The FTSE 100 looks set to open marginally lower this morning, taking a breather after the previous session’s rally, with investors digesting US President Donald Trump State of the Union speech. HSBC Holdings (LON:HSBA) will be in focus this morning amid reports that it is planning to axe investment banking jobs.

Muted start ahead

CNBC reports that according to IG, the FTSE 100 is seen opening 12 points lower at 7,165, according to IG. The blue-chip index is likely to take cues from Asia, where shares have been subdued after President Trump delivered his State of the Union speech. Nick Twidale, chief operating officer at Rakuten Securities, told Reuters that some investors were hoping that the President would offer evidence of real, concrete progress in the US-China trade negotiations. In the US, shares advanced last night in the run-up to Trump’s speech and with investors digesting corporate releases.

In the UK, the Footsie continued its uptrend yesterday, adding 143.24 points to close 2.04 percent higher at 7,177.37, as market sentiment around the world remained upbeat. The index found further support in BP (LON:BP) whose shares soared more than five percent as the blue-chip oil major delivered a jump in annual profits.

Wednesday’s agenda

There are no major macroeconomic releases out of Europe to guide the market further this morning. In the US, the nation’s trade balance for November and preliminary gross domestic product data for the fourth quarter are due out at 13:30 GMT.

In company news, GSK (LON:GSK) will post its fourth-quarter and full-year results today. Other blue-chips reporting include Barratt Developments (LON:BDEV), Imperial Brands (LON:IMB) and Severn Trent (LON:SVT). In other news, Reuters reports that HSBC is preparing to lay off dozens of staff in its global banking and markets business.