FTSE 100 preview: Footsie to build on gains after Mexico deal

The FTSE 100 looks set to open higher this morning, finding support in positive leads from the US and Asia, as the US reached an agreement with Mexico on tariffs. On the corporate front, J Sainsbury (LON:SBRY) has announced an executive change at its banking division.

FTSE 100 called higher

IG’s opening calls suggest that the Footsie will start trading 0.19 percent higher at 7,390 points this morning. The blue-chip index is expected to take cues from the US where shares rose last night as the US reached a deal with Mexico on tariffs.

“The avoidance of Mexican tariffs is a positive but this wasn’t entirely unexpected and it doesn’t by any means erase the enormous risks inherent in Trump’s trade policies,” Adam Crisafulli, a JP Morgan managing director, said in a note, as quoted by CNBC. Asian shares meanwhile have tracked the US higher this morning.

“The lift from the U.S.-Mexico trade development is likely to be a temporary one for the equity markets as the bigger issue between the United States and China remains unresolved,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management, as quoted by Reuters, adding that “nervousness will prevail in the markets until the G20 summit”.

In the UK, the Footsie started the week on the front foot, building on Friday’s gains, adding 43.60 points to end trading 0.59 percent higher at 7,375.54.

Tuesday’s agenda

Today’s macroeconomic releases include UK unemployment data, due out at 09:30 BST. IG reports that the nation’s claimant count is expected to have climbed by 21,000 last month, while the unemployment rate is forecast to have held at 3.8 percent. In FTSE 100 corporate releases, Halma (LON:HLMA) is scheduled to update investors on its full-year performance this morning, while Sainsbury’s has appointed Williams & Glyn’s former boss Jim Brown to head its banking unit.