The FTSE 100 looks set to open higher this morning, following upbeat leads from the US and Asia, with investors shrugging off the escalating trade tensions between Washington and Beijing. Tesco (LON:TSCO) will be in focus today as it prepares to launch a discount chain.
Footsie looking up
IG’s opening calls suggest that the FTSE 100 will start trading 0.17 percent higher at 7,313 points. The blue-chip index is likely to take cues from the US where shares rose even as China announced tariffs targeting $60 billion worth in US products following Washington’s move to slap tariffs on $200 billion worth of Chinese imports.
“The market is thinking this wasn’t the worst-case scenario,” said Daniel Deming, managing director at KKM Financial, as quoted by CNBC. “That’s why you’re seeing this pseudo-rally taking place.” Asian shares meanwhile have tracked the US higher this morning, despite the escalating trade tensions.
In the UK, the FTSE 100 closed little changed yesterday, giving up 1.87 percent to end the session 0.03 percent lower at 7,300.23, as investors digested the latest US tariffs on imports from China.
Today’s macroeconomic statements include the UK’s consumer price index for August, due out at 09:30 BST. IG reports that the index is expected to have climbed 2.7 percent year-on-year from 2.5 percent, and 0.3 percent month-on-month from zero percent. In the US, the nation’s housing starts and building permits for August will be released at 13:30 BST.
On the corporate front, Kingfisher (LON:KGF) is scheduled to post its half-year results, while Britain’s biggest supermarket Tesco is due to launch its discount chain Jack’s as it looks to take on German rivals Aldi and Lidl. ITV (LON:ITV) will hold a Capital Markets Day.