The UK benchmark index looks set to open higher this morning, following a strong lead from the US where shares recovered last night with investors cheering corporate earnings. In individual stocks Royal Mail Group (LON:RMG) will be in focus today amid criticism over its executive pay.
FTSE 100 looing up
IG’s opening calls suggest that the Footsie will start trading 0.40 percent higher at 7,088 points. The index is likely to take cues from the US where shares rose sharply on the back of strong company results amid the ongoing earnings season.
Kim Forrest, senior portfolio manager at Fort Pitt Capital, told CNBC that more companies should report stronger-than-expected earnings moving forward.
“We were overly worried about the economy at the start of October,” Forrest pointed out. “I think the bar has been set pretty low by sell-side analysts.” Asian shares have also advanced this morning, taking cues from the US.
In the UK, the FTSE 100 rose in the previous session, gaining 30.18 points to close 0.43 percent higher at 7,059.40.
Investors have a lot to look forward out for on the macroeconomic front today, starting with the UK consumer price index (CPI) for September, due out at 09:30 BST. IG reports that the CPI is expected to have climbed 2.4 percent year-on-year, and 0.5 percent month-on-month, from 2.7 percent and 0.7 percent, respectively. The eurozone CPI for September will follow at 10:0 BST.
On the other side of the Atlantic, US housing starts and building permits for September will be released at 13:30 BST, while the minutes from the Federal Reserve’s latest policy meeting are due out at 19:00 BST, after the UK market closes.
In corporate releases, Barratt Developments (LON:BDEV) will post results this morning. In other news, The Times reports that Royal Mail is facing fresh criticism over executive payouts after admitting that its new boss did not pay British tax on a £6-million award.