FTSE 100 preview: Trade hopes to boost index

The FTSE 100 looks set to open higher this morning, finding support in optimism over the trade relations between the US and China. Tour operators will stay in focus on the corporate front today, with an update due out from TUI Group (LON:TUI).

Upbeat start ahead

IG’s opening calls suggest that the FTSE 100 will start trading 0.40 percent higher at 7,355 points. While stocks closed little changed on the other side of the Atlantic last night, US stock futures have advanced as Treasury Secretary Steven Mnuchin signalled that US-China trade talks will resume next week.

“The comments gave a little bit of boost to sentiment, but markets are still not that optimistic either,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management, as quoted by Reuters, adding that it seemed that “there have been a lot going on behind the scenes,” referring to unusual exchanges in which President Donald Trump questioned a decision by his top trade negotiators to ask Chinese officials to delay a planned trip to US farming regions. Asian shares have also been positive this morning.

At home, the FTSE 100 fell in the previous session, giving up 18.84 points to end trading 0.26 percent lower at 7,326.08, with uncertainty over the US-China trade relations plaguing investor sentiment.

Tuesday’s releases

Today’s macroeconomic calendar includes Germany’s IFO business climate index for September, due out at 09:00 BST. In FTSE 100 company releases, TUI is set to update investors on its recent performance, with the statement to come after smaller London-listed peer Thomas Cook (LON:TCG) collapsed yesterday.

The troubled tour operator will also stay in focus as The Times reported that the City regulator is facing questions about whether trading in Thomas Cook shares should have been suspended weeks before its collapse and about the lack of disclosure over the company’s rescue talks with lenders.