Home » FTSE 100 preview: Index looking up after selloff

FTSE 100 preview: Index looking up after selloff

The FTSE 100 looks set for a positive start this morning, with worries over the US-China trade war starting to abate. Despite the earnings season starting to wind down, investors will still have some updates to look out for, with some blue-chip asset managers reporting today.

FTSE 100 seen steady

IG’s opening calls suggest that the Footsie will start trading 0.17 percent higher at 7,184 points. In the US, stocks rebounded last night with China’s central bank signalling that it plans to keep the yuan at a stronger-than-feared level.

“Going forward, stabilisation in the U.S./China trade war is now the most important key to broader market stabilization,” CNC quoted Tom Essaye, founder of The Sevens Report, as saying in a note. “If the escalation continues, that will cause a further pull-back, regardless of what the [Federal Reserve] is going to do. And, I say that because another 25 or 50 basis points of easing by the Fed won’t materially offset a protracted and escalating trade war.” Asian shares meanwhile have been subdued this morning amid lingering trade war concerns.

The FTSE 100 posted another fall in the previous session, giving up 52.16 points to end trading 0.72 percent lower at 7,171.69, pressured by the ongoing trade tensions. Rolls-Royce Holdings’ (LON:RR) was the session’s biggest faller in percentage terms, as investors digested the company’s interims which pointed to persisting problems with the Trent 1000 engines.

Wednesday’s agenda

There are no major macroeconomic releases out of Europe this morning. On the other side of the Atlantic, Canada’s seasonally-adjusted Ivey purchasing managers’ index for July will be announced at 15:00 BST.

On the corporate front, investors will eye updates from Legal & General (LON:LGEN) and Standard Life Aberdeen (LON:SLA), whose results will come after the company recently agreed a settlement with Lloyds (LON:LLOY), following the bailed-out lender’s move to terminate an asset management contract early.

About the author

Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.