FTSE 100 preview: Index looking up as Trump signals delay in tariffs increase

The FTSE 100 looks set to start the last week of February on the front foot, as US President Donald Trump announced that Washington was planning to delay tariffs on Chinese goods. J Sainsbury (LON:SBRY) will be in focus amid the latest developments over its proposed tie-up with Walmart’s Asda.

Index looking up

IG’s opening calls suggest that the FTSE 100 will start trading 0.35 percent higher at 7,204 points. The blue-chip index is likely to take cues from Asia, where shares have reacted positively to President Trump’s posts on Twitters about a delay on tariffs on Chinese goods.

“As both (the US and Chinese) Presidents said significant progress has been made, the chance for the US and China to reach a deal is getting higher,” OCBC Treasury Research said in a morning note, as quoted by CNBC. “However, the key to medium term stability hinges on two areas including agreement on China’s structural reforms and the enforcement of trade deals.”

In the UK, the Footsie closed marginally higher on Friday, adding 11.21 points to end trading 0.16 percent higher at 7,178.60, finding support in blue-chip miners, whose shares were in demand on the back of prospects for a trade deal between the US and China. In the US, shares were also in demand in the previous session.

Monday’s agenda

There are no major macroeconomic releases out of Europe to guide the market further this morning. In the US, the Chicago Fed national activity index for January will be announced at 13:30 GMT. On the corporate front, investors will look out for results from Bunzl (LON:BNZL) and Primark owner Associated British Foods (LON:ABF).

In other news, the Financial Times reports that KKR is mulling over a bid for Asda following the Competition and Markets Authority’s provisional findings over the grocer’s tie-up with Sainsbury’s.