The UK benchmark index looks set to start the week on the front foot, building on the previous session’s gains, following a strong lead from the US. On the corporate front, Hong Kong- and London-listed HSBC Holdings (LON:HSBA) has updated investors on its half-year performance this morning.
FTSE 100 looking up
IG’s opening calls suggest that the FTSE 100 will open 0.25 percent higher at 7,678 points. In the US, shares rose on Friday, with investors shrugging off worries over new tariffs on US goods by China.
“Even if you take the proposed tariffs into account, the impact would be rather limited,” Scott Clemons, chief investment strategist at Brown Brothers Harriman, told CNBC. “From a macroeconomic standpoint, it’s still pretty small.” The newswire also quoted Dave Lutz, head of ETF trading at JonesTrading, as commenting that he thought that small caps were going down and large caps were rising because “people are feeling better about the trade situation”. Asian shares meanwhile have mostly advanced this morning.
In the UK, the FTSE 100 rallied on Friday, adding 83.17 points to close 1.10 percent higher at 7,659.10, finding support in results by Mondi (LON:MNDI) and RBS (LON:RBS), with the bailed-out lender unveiling its first post-crisis dividend.
“The distraction of the reporting season has been especially welcome in the UK,” said Ian Williams, strategist at Peel Hunt, as quoted by Reuters.
There are no major macroeconomic releases scheduled for today to guide the market further. In company news, HSBC has posted interims this morning, reporting a rise in pre-tax profit for the first half of the year. easyJet (LON:EZJ) meanwhile is set to post a trading update today.