FTSE 100 preview: Index set to open on a drop after last week's Lira crash

Index down at the start of the trading week

FTSE 100 preview: Index set to open on a drop after last week's Lira crash

The FTSE 100 looks set to open the trading week on a drop, after ripples of low confidence in the European markets (caused by the Turkish Lira crash last week) continue to have an impact.

Index down at the start of the trading week  

Opening calls from IG suggest that the FTSE 100 will open 0.05 percent lower at 7,555 points. Investors are tipped to shake off the uncertainty in the European markets with both DAX (INDEXDB: DAX) and EUROSTOXX 50 (INDEXSTOXX: SX5E) making an upwards climb (despite initial losses) towards close of markets on Friday.

Despite uncertainty in the Asian Markets following trade wars between US and China, the DOW closed on a positive note with a 110.59 rise, closing on 25,669.2 after further trade talks between US and China were announced.

According to a report in CNBC, Ed Keon, chief investment strategist at QMA, said: “If you take the possibility of a trade war with China off the table for a few months that allows the market to work its way higher.” He continued: “This has been one of the market’s biggest worries. If you put in on the back burner, it’s a good thing.”

In the UK, the Footsie seemed to be overcoming the week’s earlier turbulence ending on a positive note with an increase of 2.21 points, ending the session 0.03% higher at 7,558.59 (as of Friday 17th August 16:35 BST). Meanwhile, GlaxosmithKline (LON:GSK) continued its upwards trend, ending the last session on a 0.43% rise at 1,617.00 (GBX +7.00).

Macroeconomic Statements

Today’s macroeconomic releases include a second quarter earnings update from NMC Health Plc (LON:NMC). With strong figures released earlier this year and a reported increase in patient numbers, investors will expect the report to provide evidence of continued growth. In other news, Debenhams (LON: DEB) will begin redundancy talks with fashion and home department staff as it continues its bid to restructure and prevent further profit warnings being issued.

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