The UK benchmark index looks set to start the last trading day of the week on the front foot, recouping some of the previous session’s hefty losses, with sentiment in the US and Asia starting to recover. Royal Bank of Scotland Group (LON:RBS) meanwhile is planning to move assets to the Netherlands in preparation for next year’s Brexit.
Upbeat start ahead
IG’s opening calls suggest that the FTSE 100 will open 1.22 percent higher at 6,786 points this morning. In the US, stocks had a volatile session last night, initially falling amid worries over the trade relations between Washington and Beijing, but subsequently closing off session lows after the Wall Street Journal reported that the Federal Reserve could tighten monetary policy at a slower pace than previously thought.
“What this week and a half shows is an extraordinary sensitivity to headlines, more so than usual,” said Delores Rubin, senior equities trader at Deutsche Bank Wealth Management, as quoted by CNBC. “It’s been very difficult to navigate the waters so far.” Asian shares meanwhile have advanced cautiously this morning.
In the UK, the FTSE 100 suffered a heavy slump yesterday, giving up 217.79 points to close 3.15 percent lower at 6,704.05, pressured by US-China trade worries following the arrest of a Huawei executive, and with investors shunning equities ahead of the UK parliament’s vote on Prime Minister Theresa May’s Brexit plan next week.
The main event in today’s macroeconomic calendar is the US non-farm payrolls report for November, due out at 13:30 GMT. IG reports that the world’s biggest economy is expected to have added 205,000 new jobs last month, up from 250,000 in October. In corporate developments, Reuters reports that RBS is advancing plans to move billions of pounds worth of assets to the Netherlands next March if Britain crashes out of the EU without a deal.