FTSE 100 preview: Index seen little changed amid US-China deal prospects

on Feb 18, 2019

The FTSE 100 looks set to open little changed this morning amid hopes for a trade deal between the US and China. In company news, Royal Dutch Shell (LON:RDSA) will be in focus today amid reports that Germany is objecting to the group’s rig disposal plan.

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Index seen little changed

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IG’s opening calls suggest that the Footsie will start trading 0.08 percent higher at 7,242 points. Investors are likely to focus on the prospects for a US-China trade deal, with the parties set to resume their talks this week. In the US, shares rose on Friday amid trade deal optimism.

“If there is a resolution, you’ve got a lot of market participants who are anticipating a big pop-up. That’s why we continue to see money into the equity market as well,” said Daniel Deming, managing director at KKM Financial, as quoted by CNBC. Asian shares have also advanced this morning.

In the UK, the FTSE 100 rose in the previous session, gaining 39.67 points to close 0.55 percent higher at 7,236.68, finding support in trade talks optimism.

Quiet Monday ahead

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There are no major macroeconomic releases out of Europe to guide the market further this morning, while in the US, markets will be closed for Presidents’ Day. On the corporate front, the earnings season continues with consumer goods giant Reckitt Benckiser (LON:RB) which is posting its full-year results this morning.

In other company news, The Times reports that Britain and Germany are at loggerheads over plans to let Shell abandon oil platform legs in the North Sea. Pearson (LON:PSN) meanwhile has announced the disposal of its US K12 courseware business to Nexus Capital Management for a headline consideration of $250 million.

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