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FTSE 100 preview: Hopes for US-China trade compromise to lift index

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The FTSE 100 looks set to start this Wednesday on the front foot, finding support in hopes for a trade truce between the US and China. On the corporate front, GlaxoSmithKline (LON:GSK) has reportedly entered into exclusive talks with Unilever (LON:ULVR) about the sale of its nutrition business.

Footsie to open higher

IG’s opening calls suggest that the FTSE 100 will start the session 0.47 percent higher at 7,050 points. The blue-chip index is likely to take cues from the US where shares have found support in optimism over the US-China trade relations.

CNBC reports that the major indices rose after National Economic Council Director Larry Kudlow said that the White House was having “a lot of communication with the Chinese government at all levels" ahead of a meeting between President Trump and his Chinese counterpart, Xi Jinping, at the upcoming G20 summit in Argentina. Asian shares meanwhile have been cautiously higher this morning.

In the UK, the FTSE 100 fell yesterday, giving up 19.15 points to close 0.27 percent lower at 7,016.85. Coca-Cola HBC (LON:CCH) was the session’s biggest riser in percentage terms, gaining 4.58 percent on the back of upbeat analyst comments.

Wednesday’s agenda

Today’s macroeconomic statements include Germany’s GfK consumer confidence index for December, due out at 12:00 GMT. In the US, the second estimate of the nation’s third-quarter gross domestic product will be announced at 13:00 GMT, to be followed by new home sales data for October at 15:00 GMT.

In company news, the Financial Times reports that GSK has entered into exclusive negotiations to sell its nutrition business to Unilever, ending a multi-month auction process for the $4-billion business which includes the Horlicks malted drink brand.

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