FTSE 100 to start the week in positive territory following China stimulus move


The FTSE 100 is expected to open the week in positive territory, buoyed by China’s attempt to staunch slowing growth.

The spread-better IG is predicting the UK’s premier stocks index will rise 35 points on open to 7,029.63.

Over the weekend the People’s Bank of China cut the reserves requirement ratio by a higher than anticipated one full percentage.

The move allows the biggest lenders in the People’s Republic to hold fewer reserves, which frees cash up cash for investment.

The move prompted a 1.2% rise in the Shanghai Composite, though other Asian bourses were slow to follow, with Japan’s Nikkei 225 index little changed and Australia’s ASX down marginally.

Closer to home, the focus in Europe is on Greece with euro group of finance ministers meeting later this week to discuss reforms in return for a bail-out. 

Here in the UK, big hitters ARM, AstraZeneca and Tesco report this week.

And while the grocer’s finals will be a largely historic chronicle of past mistakes they will be keenly scanned for further financial problems, or conversely (and whisper this), signs of a recovery in its fortunes.

Most in the Square Mile are still focusing firmly on the negative. A Barclays analyst noted a massive pension deficit and falling in profits are to be expected. With the write downs expected to be in the region of £3bn it is likely to represent a huge pre-tax loss.

New boss Dave Lewis faces a number of challenges in attempting to re-build its troubled balance sheet and rebuild shareholder value.

“Investors thinking of picking up Tesco stock may be better off for now sitting on the side line, as aggressive right down capital rising can’t be ruled out via a rights issue,” added The Share Centre.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Jindalee Resources' Lindsay Dudfield talks plans to unlock value at its...

Jindalee Resources Ltd's (ASX:JRL) Lindsay Dudfield discusses with Proactive London's Andrew Scott the plans to advance its McDermitt US lithium project. Back in June they received encouraging metallurgical test-work results from the project which confirmed an increase in lithium head grade...

1 day, 2 hours ago

2 min read