FTSE 100 preview: Footsie to extend rally after China data
The FTSE 100 looks set to kick off the new week higher, building on the previous session’s gains, following the latest economic data out of China. In Footsie companies news, BT Group (LON:BT.A) is reportedly interested in backing a British streaming service.
FTSE 100 looking up
IG’s opening calls suggest that the Footsie will start trading 0.47 percent higher at 7,367 points. The blue-chip index is likely to take cues from Asia where shares have advanced this morning after data showed that China’s exports had returned to growth last month despite the US tariffs. In the US, shares surged on Friday following weaker-than-expected jobs data which fuelled expectations for a rate cut.
“The market’s got a conundrum here. That’s a bad report. Just on the report itself, I think people would want to sell the market. However, the fact that it really makes the case for a rate cut, I think is why you’re seeing the market hang in there,” said JJ Kinahan, chief market strategist at TD Ameritrade,” as quoted by CNBC.
In the UK, the Footsie surged in the previous session, gaining 72.09 points to end trading 0.99 percent higher at 7,331.94, with investors digesting the weak US jobs data.
“Investors now expect any confirmed economic downturn to be salved by easing,” Ken Odeluga, City Index analyst, commented, as quoted by Reuters.
Monday’s agenda
Today’s macroeconomic statements include the UK’s trade balance, industrial manufacturing and production data as well as gross domestic product (GDP) numbers for April, all due out at 09:30 BST. IG reports that the nation’s trade deficit is expected to have narrowed to £3.2 billion, while GDP is expected to have climbed 0.2 percent month-on-month, and 1.9 percent year-on-year.
On the corporate front, investors will eye results from Ferguson (LON:FERG). In other company news, The Telegraph reports that BT is said to be in talks about investing millions of pounds in Britbox, the subscription service to be launched by ITV (LON:ITV) and the BBC.
