FTSE 100 preview: Index seen little changed amid latest US-China trade developments

The UK benchmark index looks set to open little changed in London this morning as investors continue to eye the prospects for a trade deal between the US and China. On the corporate front, Lloyds Banking Group (LON:LLOY) is continuing the banking reporting season this morning.

Index seen little changed

IG’s opening calls suggest that the Footsie will start trading 0.03 percent higher at 7,181 points. In the US, shares rose last night after President Donald Trump signalled he might push back a deadline for the country’s trade deal with China.

“While it seems probable that Trump will extend that deadline to avoid derailing the substantive negotiations now in progress, this cannot be taken for granted,” said Christopher Granville, managing director of global political research at TS Lombard, as quoted by CNBC. Asian shares have rallied this morning, boosted by trade deal hopes.

“They will likely agree on China importing a larger amount of natural gas and agricultural products,” Nobuhiko Kuramochi, chief strategist at Mizuho Securities, told Reuters, adding that China will also “open up a part of its domestic financial services and possibly some manufacturing sectors”. He, however, expects that Beijing “will not back down on so-called structural issues,” and reckons that the two countries might “perhaps agree to set up a body to continue discussing those issues”.

At home, the Footsie fell in the previous session, giving up 40.30 points to close 0.56 percent lower at 7,179.17 as investors digested corporate earnings.

Wednesday’s releases

Today’s macroeconomic statements include the eurozone’s flash consumer confidence index for February, due out at 15:00 GMT. Investors will eye Lloyds’ results, with the bailed-out lender expected to announce a share buyback. Glencore (LON:GLEN) also reports today.