FTSE 100 preview: Footsie seen higher after US gains

FTSE 100 preview: Footsie seen higher after US gains

The FTSE 100 looks set to extend this week’s rally with stocks in the US posting gains last night, continuing to find support in optimism over Washington’s trade relations with Beijing. On the corporate front, investors will eye J Sainsbury’s (LON:SBRY) first-quarter results.

FTSE 100 seen higher

IG’s opening calls suggest that the Footsie will start trading 0.13 percent higher at 7,569 points. The blue-chip index is likely to take cues from the US where shares rose last night, finding support in the country’s trade truce with China. Asian shares, however, have been subdued this morning after Washington threatened tariffs on additional European goods.

“This brings the running total of imports subject to potential levies to about $25 [billion] and offers a reminder that Trump’s trade war has no practical end in sight,” Ian Lyngen, head of US rate strategy at BMO Capital Markets, said in an email, as quoted by CNBC. “One thing is certain, any optimism that Osaka assuaged the Fed’s concern over the ‘uncertainties’ facing the global economy has quickly eroded.”

At home, the FTSE 100 extended its rally, gaining 61.69 points to end trading 0.82 percent higher at 7,559.19.

Wednesday’s agenda

Today’s macroeconomic releases include the UK’s services purchasing managers’ index (PMI) for June, due out at 09:30 BST. IG reports that the index is expected to have fallen to 50.6, from 51. On the other side of the Atlantic, investors will eye a string of updates, starting with the ADP employment report for June at 13:15 BST, to be followed by the nation’s trade balance for May at 13:30 BST. The final services PMI for June is due out at 14:45 BST, with the ISM non-manufacturing PMI for the same month to follow at 15:00 BST.

In company releases, Sainsbury’s is expected to report a small fall in first-quarter sales following last year’s tough comparatives.

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