FTSE 100 watch: US-China trade deal hopes buoy Footsie

on Mar 4, 2019
Updated: Mar 11, 2020

The UK benchmark index has climbed higher in the first day of the new week, buoyed by hopes for a trade deal between the US and China. In individual FTSE 100 movers, International Consolidated Airlines Group (LON:IAG) is underperforming the market following a clarification on its free cash flow expectations.

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FTSE 100 climbs higher

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As of 13:40 GMT, the Footsie had added 46.48 points to stand 0.65 percent higher at 7,153.21, building on the previous session’s gains. Sentiment has been upbeat today following a report in the Wall Street Journal which suggested that Washington and Beijing could reach a formal trade deal later this month.

“With all this positivity comes the risk that the market is buying on this rumour mill and is becoming more exposed should the good news not materialise,” said Markets.com analyst Neil Wilson, as quoted by Reuters, adding that “March could well come in like a lion and go out like a lamb”.

Individual Footsie movers

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IAG has been one of today’s prominent FTSE 100 fallers after clarifying in the wake of its full-year results last week that its free cash flow in the current year would be lower than last year. The group’s shares are currently changing hands 4.05 percent down at 578.60p.

Shares in British American Tobacco (LON:BATS) are outperforming the broader market, having added one percent to 2,891.50p, even as a Quebec court did not overturn a smoking class action lawsuit judgment made against the group’s Canadian unit.

Rightmove (LON:RMV) meanwhile is 5.52 percent higher at 497.95p on the back of analyst comments. Sharecast quoted Deutsche Bank as saying that concerns about competition chipping away at the company’s leadership position were misplaced.

The FTSE 100 was 0.64 percent up at 7,152.41 points as of 14:07 GMT on Monday, 04 March 2019.

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