FTSE 100 likely to finish higher in last session for August

FTSE 100 likely to finish higher in last session for August

The FTSE 100 Index is on track to finish the Friday session higher, thanks to solid contributions from miners and hopes that the US and China might be willing to resume their trade negotiations.

As noted by Reuters, Washington and Beijing signalled that they would be looking for ways to avoid trade war escalation.

“The more measured tone in deciding to focus on next month’s meeting to discuss removing the extra duties has seen some optimism start to creep back in,” CMC Markets analyst Michael Hewson, said, as quoted by the newswire.

The positive signals have bolstered most of the FTSE 100 sectors today. Mining giants Rio Tinto Plc (LON:RIO), BHP Group Plc (LON:BHP) and Anglo American Plc (LON:AAL), have helped the blue-chip index by posting gains of 2.7%, 2.2% and 2%, respectively. The mining sector has received an extra boost after news about a waste spill at a nickel plant in Papua New Guinea sparked supply fears.

Today’s biggest gainer has been NMC Health Plc (LON:NMC), whose share price has risen by 6.8% since the start of the session. The company’s shares received a big boost following last week’s reports that two groups have made a £1.5 billion offer to buy a minority stake in the UAE-based healthcare operator.

FTSE 100 IT firm Micro Focus International (LON:MCRO) has managed to pick up after its poor performance on Thursday. The company share price plunged by more than 30% yesterday, after the firm issued a profit warning. Micro Focus has gained over 5.7% since the start of today’s session.

As of 16:08 BST, the FTSE 100 index was valued at 7,211.87 points, which was 0.38% (or 27.55 points) higher than its Thursday close. Nevertheless, the index is poised for a hefty monthly loss, as it started August at nearly 7,600 points.

Featured image: Pavel Ignatov /Shutterstock.com

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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