FTSE 100 preview: Index set to open higher even as worries persist

Barclays kicks off banking reporting season

FTSE 100 preview: Index set to open higher even as worries persist

The UK benchmark index looks set to open higher this morning, recouping some of the previous session’s hefty losses, despite geopolitical worries which are weighing on investor sentiment this week. In FTSE 100 company releases, Barclays (LON:BARC) will start the banking reporting season today.

Index looking up

IG’s opening calls suggest that the Footsie will start trading 0.79 percent higher at 7,011 points. Investors are likely to shrug off a downbeat lead from the US which saw a stormy session yesterday, with shares falling on the back of disappointing company results, and then recovering most of the ground lost.

“US corporate earnings season has started with more of a whimper than a bang,” Nick Colas, co-founder of DataTrek Research, said in a note, as quoted by CNBC. “Yes, companies are beating expectations, but by less than usual.” Asian shares have tracked the US lower this morning, amid pressure on Saudi Arabia over the death of journalist Jamal Khashoggi.

“Broader market sentiment remains fragile, but as last night’s resilience by Wall Street shows, sentiment has not broken down completely,” said Junichi Ishikawa, senior FX strategist at IG Securities, as quoted by Reuters.

In the UK, the FTSE 100 suffered a hefty selloff in the previous session, giving up 87.59 points to close 1.24 percent lower at 6,955.21, pressured by geopolitical tensions and Brexit worries.

Wednesday’s releases

Investors have a lot to look out for on the macroeconomic front today, with the flash October manufacturing purchasing managers’ indices (PMIs) for France, Germany and the eurozone due out between 08:15 BST and 09:00 BST. On the other side of the Atlantic, the US manufacturing and services PMI for October will be announced at 14:45 BST, to be followed by the nation’s new home sales data for September at 15:00 BST.

On the corporate front, Barclays investors on its third-quarter performance.

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