FTSE 100 watch: Index looking up after hefty selloff

Marks & Spencer poaches Tesco executive

FTSE 100 watch: Index looking up after hefty selloff

The FTSE 100 looks set to open marginally higher this morning, following the previous sessions’ hefty selloff. On the corporate front, Marks & Spencer (LON:MKS) has hired an executive from Tesco (LON:TSCO) amid its ongoing shake-up.

Index looking up

IG’s opening calls suggest that the UK benchmark index will start trading 0.20 percent higher at 7,248 points. The blue-chip index is likely to take cues from the US where the Dow Jones rose for the first time in three days. Gains, however, remained capped amid the ongoing interest rate concerns.

“Interest rate risks remain clearly to the upside,” strategist at MRB Partners said in a note, as quoted by CNBC, adding that the Federal Reserve remained “on a gradual tightening path, but pressure to accelerate will likely escalate”. Asian shares meanwhile have fallen this morning, as the International Monetary Fund trimmed its global growth forecasts for this year and next.

“Risk sentiment is in a foul mood and stocks are sinking everywhere,” JPMorgan analysts said in a note, as quoted by Reuters.

At home, the Footsie posted another hefty fall in the previous session, giving up 85.21 points to close 1.16 percent lower at 7,233.33, amid a drop in oil prices and higher bond yields which have weighed on market sentiment around the world.

Tuesday’s releases

This Tuesday’s macroeconomic updates include Germany’s trade balance for August, due out at 07:00 BST. In company news, The Times reports that M&S has poached Tesco’s commercial director in the latest shake-up of its food business. BP (LON:BP) meanwhile announced in a statement that it has signed an agreement which will see it and Italy’s Eni work together to resume exploration activities on a major exploration and production contract in Libya.

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