The FTSE 100 looks set to open higher this Tuesday, holding steady despite the protests in Hong Kong which have pressured shares in the US and Asia. With the earnings season winding down, TUI Group (LON:TUI) is the only blue-chip set to update investors on its performance this morning.
Footsie looking up
IG’s opening calls suggest that the FTSE 100 will start trading 0.20 percent higher at 7,241 points. The blue-chip index is set to shrug off downbeat leads from the US and Asia. Stocks around the world have been pressured by the trade tension with China, the latest elections in Argentina which saw President Mauricio Macri perform poorly, as well as the protests in Hong Kong, which started as an opposition to a bill allowing extraditions to mainland China but have since escalated.
“The protests in Hong Kong are negative for stocks, which were already in an adjustment phase because there is talk that the trade war will trigger a recession,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co, as quoted by Reuters.
In the UK, the FTSE 100 retreated on Monday, giving up 27.19 points to end trading 0.37 percent lower at 7,226.72, pressured by the protests in Hong Kong which have dampened investor sentiment around the world. Rolls-Royce Holdings (LON:RR) was one of the session’s biggest fallers, giving up about 3.5 percent following a malfunction in one of the group’s Trent 1000 engines over the weekend.
Today’s macroeconomic releases include Germany’s final inflation rate for July, due out at 07:00 BST, to be followed by UK employment data at 09:30 BST, and Germany’s ZEW index at 10:00 BST. In the US, the nation’s consumer price index for July will be announced at 13:30 BST. On the corporate front, TUI Group will post third-quarter results this morning, having cautioned on profits earlier this year.