The FTSE 100 looks set to start the last trading day of the week marginally higher, following a selloff in the previous session. On the corporate front, blue-chip utility SSE (LON:SSE) has posted an unscheduled trading update.
Muted start ahead
IG’s opening calls suggest that the Footsie will start trading 0.05 percent higher at 7,097 points. In the US, stocks fell sharply last night amid trade worries. CNBC reported that it had learnt through a source that a meeting between President Donald Trump and Chinese President Xi Jinping was ‘highly unlikely’.
“The keystone in the wall of worry is the trade discord,” said Sam Stovall, chief investment strategist at CFRA Research, as quoted by CNBC. “Should the negotiations crumble so too will near term support for equity prices.” Asian shares have tracked the US lower this morning, pressured by the US-China trade worries.
The FTSE 100 posted a hefty fall in London yesterday, after trading little changed through most of the session. The blue-chip index shed 79.51 points to close 1.11 percent lower at 7,093.58 as the Bank of England slashed its growth forecast.
“This (sign that there would probably not be a rate hike in 2019) is somewhat of a shift and appears in lock step with the dovish tilt we have seen from other major central banks in recent months,” Markets.com analyst Neil Wilson said, as quoted by Reuters. A fall in TUI Group (LON:TUI) also pressured the index, with the tour operator’s shares losing nearly a fifth of their value as the company lowered its earnings expectations.
Today’s macroeconomic statements include Germany’s trade balance, due out at 07:00 GMT. In company news, SSE has posted a trading statement, lowering its earnings forecasts.