FTSE 100 preview: Footsie to extend rally on Wednesday
The FTSE 100 looks set to open higher this Wednesday, boosted by positive leads from the US and Asia. Investors have a lot to look out for on the corporate front, including results from TUI Group (LON:TUI).
FTSE 100 looking up
IG’s opening calls suggest that the Footsie will start trading 0.21 percent higher at 7,257 points. The blue-chip index is likely to take cues from the US where shares rose last night despite the escalating trade war between the US and China.
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“The reason we’re seeing this recovery is because fundamentals haven’t changed,” Kevin Miller, CIO at E-Valuator Funds, told CNBC, noting that the US economy remained strong. The newswire, however, also quoted Greg Luken, CEO of Luken Investment Analytics, as commenting that it was a ‘dead-cat bounce,’ or a temporary recovery. Asian shares meanwhile have tracked the US higher this morning.
“I think this is going to last for a while,” he said, as quoted by CNBC. “This is not something that’s going to be resolved tomorrow and anybody who says they know exactly how this will play out is spinning a yarn.”
At home, the Footsie rallied yesterday, gaining 77.92 points to close 1.09 percent higher at 7,241.60.
Today’s macroeconomic releases include a flash estimate for Germany’s first-quarter gross domestic product (GDP) at 07:00 BST, as well as the second estimate for the eurozone’s first-quarter GDP at 10:00 BST. In the US, the nation’s retail sales for April will be announced at 13:30 BST.
In company releases, TUI will post half-year results, having flagged a €200-million hit to profits due to the Boeing 737 MAX grounding. Other blue-chips reporting today include Kingfisher (LON:KGF), which is on the lookout for a new CEO, as well as Compass Group (LON:CPG), British Land (LON:BLND), Micro Focus (LON:MCRO), Hargreaves Lansdown (LON:HL) and Experian (LON:EXPN).