The FTSE 100 looks set to start the second half of the year on the front foot, with investors digesting the outcome of the meeting of US President Donald Trump and Chinese President Xi Jinping. On the corporate front, investors will digest news from AstraZeneca (LON:AZN) as the EU issued positive opinions on some of its treatments.
FTSE 100 looking up
IG’s opening calls suggest that the Footsie will start trading 0.91 percent higher at 7,493 points. Sentiment is likely to be upbeat today as US President Donald Trump and Chinese President Xi Jinpin confirmed that they did not plan to levy any new tariffs. The news has sent US futures stock higher this morning.
“The markets appear to be content with the cooperative tone coming out of the meetings. To me, it felt like the contrarian play was to the upside post meetings,” said Dan Deming, managing director at KKM Financial. “There was a great deal of bearishness in sentiment headed into the meeting. Many market observers were discounting any change in the narrative, which made many believe the risk was to the downside.” Asia-Pacific stocks have also advanced this morning.
Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute in Tokyo, however, told Reuters that it was ‘too early to turn optimistic’.
“The two countries just kicked the can down the road and there’s no knowing what could happen next,” the expert pointed out.
At home, the Footsie ended June in positive territory, gaining 23.30 points to end trading 0.31 percent higher at 7,425.63.
July is set to start with a string of macroeconomic updates, with June’s final purchasing managers’ indices (PMIs) for France, Germany and the eurozone all due out between 08:00 BST and 09:00 BST, to be followed by the UK’s manufacturing PMI at 09:30 BST. IG reports that the index is expected to have moved back into expansion territory, having climbed to 52 from 49.9.
The macroeconomic calendar will then continue with eurozone unemployment data for May at 10:00 BST, and the final US manufacturing PMI for June at 14:45 BST, to be followed by the nation’s ISM manufacturing PMI for the same month at 15:00 BST.