FTSE 100 heading for negative open as UK set to agree trade deal with India

The FTSE 100 is predicted to open up in a tentative fashion after the long weekend and ahead of the expected signing of a new trade deal between the UK and India.

London’s blue-chip benchmark is heading for a five-point decline, according to spread-betters on the IG platform.

Yesterday, while UK traders relaxed in the wind and rain of the bank holiday, Wall Street had a mixed time, with the Dow Jones up 238 points or 0.7% to above 34,000 mark and the S&P 500 rising 0.3% but the Nasdaq dropping 0.5%.

US bond yields also moved lower, the US dollar gave up much of its month-end gains from last week and gold powered higher to the brink of $1,800.00 an ounce.

The blame for all this was ISM manufacturing PMI data missing expectations quite noticeably.

“If nothing else, it shows just how much financial markets are wedded to the US recovery story leading the world out of the pandemic recession,” said market analyst Jeffrey Halley at Oanda.

The UK will have its own dose of manufacturing PMI data later this morning, with the market expecting a reading of 60.7 for April.

Ahead of its Monetary Policy Committee’s decision later in the week, the Bank of England will also be releasing a range of lending data.

There are also sure to be headlines about Prime Minister Boris Johnson’s video conference meeting with Indian counterpart Narendra Modi as the pair are set to agree various final details on the pathway towards a new free trade deal, which Downing Street said would create 6,500 British jobs and contain more than £533mln of new Indian investment into the UK, in sectors such as health and technology.

A new trade partnership is expected to lower non-tariff barriers on fruit and medical devices, with the expectation that this will allow British businesses to export more easily to India.

Around the markets

Pound – down 0.2% at US$1.3877

Gold – up 1.0% at US$1,786.67

Oil – Brent crude down 0.2% at US$67.40

Bitcoin – down 3.4% to US$56,049.27

6.50am: Early Markets – Asia / Australia

Stocks in the Asia-Pacific region were higher on Tuesday as Reserve Bank of Australia decided to maintain its current policy settings, including keeping the cash rate at 0.1%.

The markets in China, Japan and Thailand are closed on Tuesday for holidays.

The Hang Seng index in Hong Kong rose 0.47% while South Korea’s Kospi gained 0.34%.

Shares in Australia advanced, with the S&P/ASX 200 trading 0.47% higher.

Proactive Australia news:

Arrow Minerals Ltd (ASX:AMD) has received commitments from qualified sophisticated and professional investors to raise $3 million through the issue of 500 million shares at 6 cents per share.

Archer Materials Ltd’s (ASX:AXE) (OTCMKTS:ARRXF) (FRA:38A) shares are trading about 5% higher intra-day after executing a new quantum computing agreement with International Business Machines Corporation (NYSE:IBM).

MGC Pharmaceuticals Ltd (ASX:MXC) (LON:MXC) (OTCMKTS:MGCLF) has received a new wholesale purchase order of ArtemiC Rescue from Swiss PharmaCan AG (SPC) worth about €640,000 (A$1 million).

Meteoric Resources NL (ASX:MEI) is “intersecting the right rocks and alteration styles”, managing director Andrew Tunks says of the first drill hole to test a major IP chargeability anomaly detected in late 2020 at Juruena Gold-Copper Project in Brazil.

Great Boulder Resources Ltd (ASX:GBR) shares have surged up to 85% as assays from Blue Poles discovery within the Whiteheads Gold Project in WA have confirmed a large-scale discovery.

Kin Mining NL (ASX:KIN) (FRA:8KM) has received further wide, high-grade assays from ongoing reverse circulation (RC) drilling at the Cardinia Hill deposit within the Cardinia Gold Project (CGP), near Leonora in Western Australia.

Technology Metals Ltd (ASX:TMT) (FRA:TM6) has defined a simplified process flowsheet for the Yarrabubba Iron-Vanadium Project in Western Australia’s Mid-West to deliver high purity magnetite at a 75 to 90 micron grind size and at a rate of 1.5 million tonnes per annum.

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