FTSE 100 preview: Index looking up as US stocks recover

Lloyds’ boss buys shares in newly-privatised lender

FTSE 100 preview: Index looking up as US stocks recover

The FTSE 100 index looks set to open higher this morning, following the previous session’s hefty selloff, finding support in an upbeat lead from the US. Lloyds Banking Group (LON:LLOY) will remain in focus today as chief executive Antonio Horta-Osorio bought shares in the lender, showing his commitment to the privatised bank, amid speculation that he might take the top job at HSBC (LON:HSBA).

According to IG, the UK benchmark index is seen opening 32 points higher this morning. The Footsie is likely to take cues from the US where stocks rebounded last night, recovering from a selloff prompted by reports that President Donald Trump had attempted to interfere with a federal investigation.

“What happened yesterday was interesting. You had a complete removal of any Trump premium,” Randy Warren, chief investment officer at Warren Financial, told CNBC. “What’s happening now is the fundamentals are taking over.” Asian shares meanwhile have been mixed this morning.

“While US markets managed to stage a moderate recovery with investors finding good entry points after the heavy sell-off, Asian investors are likely choosing to err on the cautious side, especially with multiple event risks in the week ahead,” said Jingyi Pan, market strategist at IG in Singapore, as quoted by Reuters, adding that those events included testimony by former FBI director James Comey at a Senate hearing and an OPEC meeting in Vienna.

At home, the Footsie declined amid the global markets selloff, shedding 67.05 points to end the session 0.89 percent lower at 7,436.42.

Today’s macroeconomic releases include a flash reading of the eurozone consumer confidence for May, due out at 15:00 BST. On the corporate front, Hikma Pharmaceuticals (LON:HIK) is scheduled to update investors on its interim performance. The generic drugmaker is also scheduled to hold its annual general meeting today. In other news, Lloyds has disclosed that its chief executive has spent about £36,000 buying up shares in the lender, which was returned to full private ownership this week.

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