FTSE 100 preview: Index looking up after positive leads

FTSE 100 preview: Index looking up after positive leads
Written by:
Tsveta van Son
April 15, 2020

The FTSE 100 looks set to open higher this morning, building on the previous session’s gains, benefitting from upbeat leads from the US and Asia. On the corporate front, investors will eye more updates from blue-chip asset managers.

FTSE 100 looking up

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IG’s opening calls suggest that the Footsie will start trading 0.39 percent higher at 7,227 points. In the US, stocks bounced off their lows, with investors responding positively to a limited fall in the yuan.

“When we started getting the headlines with China, institutions needed some time to make their moves and reposition. I think we’ve priced in all the headlines that have been coming out,” said Michael Katz, partner at Seven Points Capital, as quoted by CNBC. “If we get more headlines and back and forth between China and the U.S., I think we head back lower. But right now everything seems to be priced in. If we don’t get any more headlines, I think that takes some pressure off the market.” Asian shares have also advanced this morning, further boosted by better-than-expected numbers out of China.

At home, the FTSE 100 rose in the previous session adding 27.01 points to end trading 0.38 percent higher at 7,198.70, with worries over the US-China trade relations abating.

Thursday’s agenda

There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the nation’s jobless claims for the week ending August 3 are due out at 13:30 BST. On the corporate front, Aviva (LON:AV) and Hargreaves Lansdown (LON:HL) are set to continue the summer earnings season.

FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include AstraZeneca (LON:AZN), Barclays (LON:BARC), BP (LON:BP), BT (LON:BT.A), Diageo (LON:DGE), Direct Line (LON:DLG), Fresnillo (LON:FRES), GlaxoSmithKline (LON:GSK), Hiscox (LON:HSX), Informa (LON:INF), Lloyds (LON:LLOY), Rio Tinto (LON:RIO), Rentokil Initial (LON:RTO), Standard Chartered (LON:STAN) and Unilever (LON:ULVR). Reuters’ calculations suggest that ex-divs will trim 37.7 points off the index.