FTSE 100 to begin Thursday positively as global equities rise ahead of Trump-vs-China trade talks

The FTSE 100 is expected to get off on the front foot on Thursday morning, albeit activity is somewhat muted ahead of US-vs-China trade talks due to start later today.

IG Markets calls the FTSE 100 up around 7 points at 7,164 to 7,167 with just over an hour to go until the open.

Trump vs China and Brexit are the day’s focal points (the Groundhog Day meter is currently set at ‘Bill Murray screaming manically whilst driving the wrong way down train tracks’).

Nonetheless, sentiments are evidently skewed slightly to the positive even if everyone acknowledges the uncertainty of it all.

“Yesterday we heard that China are interested in brokering a partial trade deal, which helped stocks in Europe as well as the US,” said David Madden, analyst at CMC Markets.

“The positive signals from China are all well and good, but hopes aren’t too high as certain topics are not up for discussion as far as China are concerned.

The analyst added: “Washington DC are not keen on China’s industrial policy or the government subsidies, but Being are not willing to compromise on those topics so major progress is unlikely.

“China requested that the US don’t impose tariffs later this month or in December as they are scheduled to do so, in exchange for an increase of agricultural purchases by Chinese firms.

“The Trump administration is keen to strike a broader trade deal, but if a small bit of progress is made in the next couple of days, it might just be a small component of the overall process.”

Wall Street last night was mostly pointing higher. The Dow Jones marked a positive close, rising 0.7% or 181 points to 26,346 whilst the S&P 500 added 0.9% to finish at 2,919 and the Nasdaq gained 1.02% end at 7,903.

In Asia, Japan’s Nikkei moved 0.34% higher to trade at 21,530 while Hong Kong’s Hang Seng added 0.46% to 25,801 and the Shanghai Composite notched 0.47% higher to 2,938.

Around the markets

The pound: US$1.2229, up 0.19%

Gold price: US$1,506, up 0.05%

Brent crude: US$58.25, up 0.1%

Bitcoin: US$8,568, up 5.15%

Significant announcements expected Thursday 10 October:

Interims: N Brown Group plc (LON:BWNG), Morses Club PLC (LON:MCL), OnTheMarket PLC (LON:OTMP)

Trading statement: Dunelm Group plc (LON:DNLM), Hargreaves Lansdown PLC (LON:HL.), Mondi PLC (LON:MNDI)

FTSE 100 ex-dividends: Barratt Developments PLC (LON:BDEV), Centrica PLC (LON:CAN), HSBC Holdings PLC (LON:PLC), Tesco PLC (LON:TSCO)

Economic data: RICS housing market survey, UK GDP, UK index of services, ECB policy minutes, US initial jobless claims, US consumer price inflation

Story by ProactiveInvestors