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FTSE 100 preview: Upbeat start to December ahead after US-China trade truce

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The FTSE 100 looks set to start the last month of the year on the front foot, with investors cheering news about a trade truce between the US and China. Vodafone (LON:VOD) will be in focus today amid reports that its deal with Liberty Global is facing a full EU antitrust probe.

Index seen higher

IG’s opening calls suggest that the UK benchmark index will open 1.53 percent higher at 7,087 points. Sentiment is likely to be upbeat after the US and China reached a temporary trade truce. In the US, shares rose on Friday, amid trade optimism, while Asian shares have rallied this morning.

“Markets are opening with a knee-jerk boost to risk appetite but time will tell how enduring the optimism proves to be,” said ANZ economist Jo Masters, as quoted by Reuters. “There are already very different official takes on what was achieved at the meeting.”

In the UK, the FTSE 100 ended November on a downbeat note, giving up 58.71 points to close 0.83 percent lower at 6,980.24, amid investor caution ahead of the G-20 summit.

Monday’s agenda

Today’s macroeconomic releases include the UK’s manufacturing purchasing managers’ index (PMI) for November, due out at 09:30 GMT. IG reports that the index is forecast to have climbed 54.3, from 51.1. In the US, the nation’s manufacturing PMI for November is out at 15:00 GMT. The oil price will also be in focus as CNBC reported that Qatar had announced plans to pull out of OPEC.

In company news, Reuters reports that Vodafone’s proposed acquisition of Liberty Global’s assets in Germany and eastern Europe is likely to face a full EU antitrust investigation. The Times meanwhile has revealed that reported suspicions of a new market manipulation scandal to the City regulator this year.

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