With only hours to go before the trade negotiations begin between the United States of America and China, the global financial markets have started being active in showing response. FTSE 100 index has been reported to have opened at 7,166.50. Only minutes following the day open, the market rallied up to 7,178.19. This hike was almost immediately followed by a sharp decline to 7,132.16. Footsie is currently trading at 7,147.31 level. According to the experts’ forecast, the market is being expected to oscillate between a high of 7,185.43 and a low of 7,130.52 on Thursday, October 10th, 2019.
U.S – China Trade Talks And Brexit Continue To Take The Lead
The U.S – China trade talks along with Brexit continue to be the primary market movers for the day. The announcement that China may be interested in a partial deal with the U.S stirred up the markets in the U.S as well as in Europe, towards the end of Wednesday, October 9th, 2019. However, there are still issues that are non-negotiable between the two parties such as the likes of forced technology transfers, intellectual property, and China’s government subsidies and industrial policy. In light of such differences, financial experts are reluctant to be too hopeful of the outcome.
China has proposed increased agricultural purchases to the U.S as a partial deal while the Trump administration is more focused on resuming the currency agreement that was signed earlier in 2019 as the first phase of trade negotiations with China.
The GDP report for the United Kingdom set to be announced at 09:30 GMT +1 along with the index of services is expected to bring the next wave of volatility in FTSE 100 index.
Financial Events Expected To Impact The Individual Stocks
Aberdeen Standard Investments, in its capacity as one of the largest shareholders of BHP, has demanded on Wednesday that BHP dissociates itself with Lobby Groups for the latter’s failure to comply with BHP’s undertaking on climate leadership.
Prominent businesses like OnTheMarket, Morses Club, and N Brown Group is expected to release its interim financial statements on Thursday. Trading statements of Hargreaves Lansdown, Mondi, and Dunelm Group are among the other significant events for the day that are anticipated to reflect in the share prices of the individual companies.
As per the reports from the London City Airport, Extinction Rebellion (climate change protestors) has declared its plan of disrupting the operations and keeping the terminals occupied for three days.
Tesco, Centrica, HSBC Holdings, and Barratt Developments are among the few of the prominent businesses which will be announcing their ex-dividends later in the day.
British Airways (International Consolidated Airlines), has made an announcement that a new flight will take on a popular route of Thomas Cook Airlines. It is expected to fly from Gatwick Airport in London to Antalya Turkish Resort. It is being highlighted as an attempt to bridge the gap left behind by the collapse of Thomas Cook Airlines.
The economic data lined up to cast an impact on the financial markets include US CPI, ECB policy minutes, RICS housing survey, and initial jobless claims for the U.S.
Royal Dutch Shell has announced its loyalty scheme this morning that pledges to actively counter the carbon dioxide emissions.