FTSE 100 preview: Index to open lower amid Saudi tensions

Earnings season continues with Whitbread

FTSE 100 preview: Index to open lower amid Saudi tensions

The FTSE 100 looks set to start today’s session in the red, extending Monday’s losses, following downbeat leads from the US and Asia where tensions over Saudi Arabia have weighed on sentiment. On the corporate front, the earnings season is picking up steam with a string of companies reporting, including Premier Inn owner Whitbread (LON:WTB).

Index seen lower

IG’s opening calls suggest that the Footsie will start trading 0.54 percent lower at 7,005 points. In the US, the Dow and the S&P closed lower last night, amid geopolitical worries and with investors focusing on the earnings season.

“You need the market to calm down for investors to jump back in,” said Jeremy Klein, chief market strategist at FBN Securities, as quoted by CNBC. “Hopefully, earnings will help with that.” Asian shares have slipped this morning, pressured by worries over Italy’s budget as well as tensions over Saudi Arabia following the death of journalist Jamal Khashoggi.   

“In short, the world seems to be getting into chaos,” Akira Takei, bond fund manager at Asset Management One, told Reuters. The newswire reports that immediate market focus is on Turkish President Tayyip Erdogan, who has said he will release information about the investigation in a speech today.

At home, the Footsie started the week on the back foot, giving up seven points to close 0.10 percent lower at 7,042.80, as investors focused on corporate earnings.

Tuesday’s releases

Today’s macroeconomic statements include Germany’s producer price index for September, due out at 07:00 BST, to be followed by the flash consumer confidence index for the eurozone at 15:00 BST. On the corporate front, the earnings season continues with Anglo American (LON:AAL), Bunzl (LON:BNZL), St James’s Place (LON:STJ) and Travis Perkins (LON:TPK). Whitbread, which earlier this year agreed a deal to sell its Costa Coffee business, will also post results this morning.

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