The FTSE 100 looks set to start Wednesday’s session on the front foot, building on yesterday’s gains, as the US moved to delay some tariffs on China. On the corporate front, Prudential (LON:PRU) is reporting half-year results today.
FTSE 100 seen higher
IG’s opening calls suggest that the Footsie will open 0.40 percent higher at 7,280 points this morning. The blue-chip index is set to take cues from the US where shares rose last night as the US delayed tariffs on some imports from China.
“While the US-China developments this morning are positive, keep in mind that even if the 9/1 tariffs are completely abandoned, the S&P 500 will still struggle to get above 3,000,” Adam Crisafulli, a JP Morgan managing director, said in a note, as quoted y CNBC. “The next big steps on the USChina relationship front concerns Huawei and agriculture.” Asian shares have advanced this morning, tracking the US higher.
“President Trump did delay the tariffs and while this is positive for equities, the markets will remain wary of the tariffs still being implemented come December,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management, told Reuters.
In the UK, the FTSE 100 rose in the previous session, gaining 24.18 points to end trading 0.33 percent higher at 7,250.90, amid easing worries over the US’ trade relations with China.
Today’s macroeconomic releases include Germany’s flash second-quarter gross domestic product, due out at 07:00 BST. In the UK, the nation’s consumer price index for July will be announced at 09:30 BST and IG reports that the index is forecast to have climbed 2.2 percent year-on-year and 0.2 percent month-on-month. The second estimate for the eurozone’s second-quarter gross domestic product will follow at 10:00 BST.
On the corporate front, investors will eye an update over Prudential’s move to split its business into two. Admiral (LON:ADM) is also reporting today.)