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FTSE 100 preview: Footsie to extend rally on Wednesday

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The FTSE 100 looks set to open higher this Wednesday, boosted by positive leads from the US and Asia. Investors have a lot to look out for on the corporate front, including results from TUI Group (LON:TUI).

FTSE 100 looking up

IG’s opening calls suggest that the Footsie will start trading 0.21 percent higher at 7,257 points. The blue-chip index is likely to take cues from the US where shares rose last night despite the escalating trade war between the US and China.

“The reason we’re seeing this recovery is because fundamentals haven’t changed,” Kevin Miller, CIO at E-Valuator Funds, told CNBC, noting that the US economy remained strong. The newswire, however, also quoted Greg Luken, CEO of Luken Investment Analytics, as commenting that it was a ‘dead-cat bounce,’ or a temporary recovery. Asian shares meanwhile have tracked the US higher this morning.

“I think this is going to last for a while,” he said, as quoted by CNBC. “This is not something that’s going to be resolved tomorrow and anybody who says they know exactly how this will play out is spinning a yarn.”

At home, the Footsie rallied yesterday, gaining 77.92 points to close 1.09 percent higher at 7,241.60.

Wednesday’s agenda

Today’s macroeconomic releases include a flash estimate for Germany’s first-quarter gross domestic product (GDP) at 07:00 BST, as well as the second estimate for the eurozone’s first-quarter GDP at 10:00 BST. In the US, the nation’s retail sales for April will be announced at 13:30 BST.

In company releases, TUI will post half-year results, having flagged a €200-million hit to profits due to the Boeing 737 MAX grounding. Other blue-chips reporting today include Kingfisher (LON:KGF), which is on the lookout for a new CEO, as well as Compass Group (LON:CPG), British Land (LON:BLND), Micro Focus (LON:MCRO), Hargreaves Lansdown (LON:HL) and Experian (LON:EXPN).

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