FTSE 100 preview: Index seen lower as US-China trade relations stay in focus

The FTSE 100 looks set to open lower this morning, with investors focusing on the ongoing trade issues between the US and China. Royal Bank of Scotland Group (LON:RBS) will be in focus on the corporate front as it faces a legal challenge I the US.  

Index seen subdued

IG’s opening calls suggest that the Footsie will start trading 0.15 percent lower at 7,172 points. The blue-chip index is likely to take cues from the US where shares fell last night with investors focusing on the US-China trade relations. Sources told CNBC that the negotiations between Washington and Beijing were in ‘the final stages,’ and that a summit in Mar-a-Lago later this month could close the deal. Reuters meanwhile reported that US Secretary of State Mike Pompeo had said that he thought that the countries were ‘on the cusp’ of a deal to end their trade war. Asian shares have climbed higher this morning, boosted by China stimulus hopes.

At home, the Footsie rose in the previous session, gaining 49.04 points to close 0.69 percent higher at 7,183.43 as investors digested economic data and corporate news.

Wednesday’s releases

There are no major macroeconomic releases out of Europe this morning. In the US, the ADP payrolls report for February is due out at 13:15 GMT, to be followed by the nation’s trade balance for December at 13:30 GMT. In company releases, Legal & General (LON:LGEN) are scheduled to update investors on their performance.

In other company developments, Reuters reports that RBS and Bank of America Corp have been sued by investors in the US over their alleged roles in a conspiracy to rig prices in the $9.4 trillion European government bond market.