The FTSE 100 looks set to open higher in London this morning, shrugging off concerns over the US-China trade war. On the corporate front, Vodafone (LON:VOD) will post its preliminary results this morning, following reports that it might trim its payout to shareholders.
FTSE 100 looking up
IG’s opening calls suggest that the Footsie will start trading 0.23 percent higher at 7,180 points. The blue-chip index is likely to shrug off a downbeat lead from the US where shares retreated sharply last night as China decided to raise tariffs on some US goods.
“I think this is a prelude of things to come,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management, as quoted by CNBC. “We should expect more volatility for the foreseeable future.” Asian shares have also retreated this morning, tracking the US lower.
“We don’t see any quick end to this state of the markets until we see some resolution, constructive dialogue and something very solid in terms of deals. But the hopes for that are a bit misplaced currently,” Prakash Sakpal, Asia economist at ING in Singapore, told Reuters.
In the UK, the FTSE 100 started the new week on the back foot, giving up 39.61 points to close 0.55 percent lower at 7,163.68, pressured by worries over the US-China trade relations. A drop in Vodafone, whose shares closed more than five percent in the red, also weighed on the Footsie.
Today’s macroeconomic releases include UK employment data, due out at 09:30 BST. IG reports that claimant count is expected to have climbed in April by 20,000 from 28,300 from a month earlier, while the unemployment rate is forecast to have held steady at 3.9 percent. Germany’s ZEW economic sentiment index for May will be out at 10:00 BST.
Vodafone is due to update investors on its full-year performance this morning, with the group’s dividend set to be in the centre of the report. Standard Life Aberdeen (LON:SLA), DCC (LON:DCC) and Land Securities (LON:LAND) are also reporting today.