The FTSE 100 looks set to open higher on the last trading day of the week, staying resilient despite the new US tariffs on Chinese goods. On the corporate front, British Airways and Iberia owner International Consolidate Airlines Group (LON:IAG) is scheduled to update investors on its first-quarter performance this morning.
Footsie seen higher
IG’s opening calls suggest that the FTSE 100 will start trading 0.38 percent higher at 7,235 points. Shares resumed their selloff stateside, with new US tariffs on Chinese goods set to kick off at midnight.
“We note that details in the notice implementing the tariff hike indicate that exports that have already left Chinese ports before May 10 will not be subject to the increase,” wrote Goldman economist Jan Hatzius, as quoted by CNBC. “This creates an unofficial window, potentially lasting a couple of weeks, in which negotiations can continue and generates a ‘soft’ deadline to reach a deal.”
He added that this also left “an opportunity for the two sides to reach an agreement in the next couple of weeks, though challenges remain”. Asian shares have been mixed this morning.
In the UK, the Footsie shed 63.59 points to end trading 0.87 percent lower at 7,207.41, as investors digested the latest batch of earnings releases, including RSA Insurance (LON:RSA) which was one of the session’s biggest risers.
Today’s macroeconomic releases include Germany’s trade balance for March, due out at 07:00 BST, to be followed by the UK trade balance and gross domestic product data at 09:30 BST. IG reports that the UK’s trade deficit is expected to have narrowed to £2.7 billion, while the March GDP is expected to have climbed 1.8 percent year-on-year from two percent and falls 0.1 percent month-on-month from +0.2 percent.
In company releases, IAG is set to update investors on its first-quarter performance.