FTSE 100 preview: Another selloff on the cards as US plunges

Index to extend losses as risk-off sentiment grips global markets

FTSE 100 preview: Another selloff on the cards as US plunges

The FTSE 100 is set to open deep in the red this morning, pressured by a selloff on the other side of the Atlantic, which has also spread to Asia. On the corporate front, the BBC reports that Tesco’s (LON:TSCO) boss Dave Lewis has told a court of his ‘genuine shock’ on learning of the £250-million overstatement of the company's profits.

Downbeat start ahead

CNBC reports that the FTSE 100 is seen opening 105 points lower at 7,046 this morning. The blue-chip index is likely to take cues from the US where shares tumbled last night, led by the tech sector, with interest rate fears weighing on sentiment. Asian shares have also plunged this morning, tracking the US lower.

“Equity markets are locked in a sharp sell-off, with concern around how far yields will rise, warnings from the IMF about financial stability risks and continued trade tension all driving uncertainty,” summed up analysts at ANZ, as quoted by Reuters.

In the UK, the FTSE 100 suffered another hefty fall, giving up 91.85 points to close 1.27 percent lower at 7,145.74, pressured by Brexit deal optimism which lifted sterling.

Thursday’s agenda

There are no major macroeconomic releases out of Europe to guide the market this morning. In the US, the nation’s consumer price index for September is due out at 13:30 BST. On the corporate front, Hargreaves Lansdown (LON:HL) and Mondi (LON:MNDI) are scheduled to post results today. In other news, the BBC reports that Tesco’s boss Dave Lewis told Southwark Crown Court he had ‘no indication at all’ of the accounting black hole at Britain’s biggest grocer until the issue was brought to his attention by the supermarket’s legal department.

Blue-chips, whose shares are going e-dividend today, include Barratt Developments (LON:BDEV), Centrica (LON:CNA), HSBC Holdings (LON:HSBA) and Tesco (LON:TSCO). Reuters’ calculations suggest that ex-divs will knock 8.61 points off the Footsie.

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