FTSE 100 preview: Index seen flat as German woes continue to weigh

easyJet to post FY results as Carolyn McCall steps down

FTSE 100 preview: Index seen flat as German woes continue to weigh

The UK benchmark index looks set to open flat this morning, with the ongoing worries over Germany’s political situation expected to continue to weigh on sentiment. On the corporate front, easyJet (LON:EZJ) is scheduled to update investors on its full-year performance.

Flat start ahead

IG’s opening calls suggest that the FTSE 100 will open at 7,389 points, flat in percentage terms. Sentiment is likely to be subdued today amid prospects of fresh elections in German after Chancellor Angela Merkel signalled that she would prefer a new vote to a minority government.

“So another grey cloud has formed over euroland for investors to worry about,” wrote Carl Weinberg, chief economist at High Frequency Economics, as quoted by Reuters.

In the US stocks rose last night, amid positive expectations from the upcoming tax reform. CNBC meanwhile quoted John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, as saying in a note that the stock market’s recent struggles were mostly linked to seasonal factors, including profit-taking, portfolio rotation and rebalancing. Asian shares have tracked the US higher this morning.

The Footsie closed marginally higher yesterday, adding 8.78 points to end the session 0.12 percent higher at 7,389.46.

Tuesday’s agenda

There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the nation’s existing home sales for October will be released at 15:00 GMT.

In company releases, easyJet is expected to unveil a drop in profits. The airline’s results come as the company faces a change at the top, with Carolyn McCall due to take the top job at ITV (LON:ITV). Other blue-chips reporting today include Compass (LON:CPG), Babcock (LON:BAB), Kingfisher (LON:KGF), Johnson Matthey (LON:JMAT), CRH (LON:CRH) and Intertek (LON:ITRK). 

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