The FTSE 100 looks set to build on the previous session’s rally, with investors digesting the prospects of a trade deal between the US and China in the wake of the G-20 summit. On the corporate front, WPP (LON:WPP) will stay in focus amid news that it is in talks over the sale of Kantar.
FTSE 100 seen higher
IG’s opening calls suggest that the Footsie will start trading 0.29 percent higher at 7,519 points this morning. Sentiment is likely to remain upbeat today with CNBC reporting that US President Donald Trump had said that talks with China had ‘already begun’ following his meeting with Chinese President Xi Jinping at the G-20 summit over the weekend.
US stock futures, however, have been slightly lower, while Asian stocks have been subdued this morning.
“Euphoria that the trade negotiations are back on the table has probably waned and again the cautious tone is getting hold of the markets going forward,” said Prakash Sakpal, an economist with ING in Singapore, as quoted by Reuters, adding that a stronger recovery would require more support.
The Footsie started July on the front foot, rallying as investors digested the outcome of the G-20 meeting between US and China’s presidents. The blue-chip index added 71.78 points to end trading 0.97 percent higher at 7,497.50.
Today’s macroeconomic releases include German retail sales data for May, due out at 07:00 BST, to be followed by the UK’s construction purchasing managers’ index for June at 09:30 BST. IG reports that the index is expected to have climbed to 49.7 last month, from 48.6.
In FTSE 100 company news, WPP confirmed yesterday that it was in talks with Bain Capital over the sale of its Kantar business. The update came after earlier in the day, the add giant announced a deal to sell its interest in sports, entertainment and communications group Chime.