The UK benchmark index looks set to open firmly in the red this morning, with US and Asian shares pulling back amid geopolitical and trade worries. On the corporate front, the reporting season continues with bailed-out Lloyds Banking Group (LON:LLOY).
FTSE 100 to open lower
IG’s opening calls suggest that the Footsie will start the session 0.84 percent lower at 6,905 points. The blue-chip index is likely to take cues from the US where shares fell last night with worries about corporate earnings adding to trade tensions between the US and China, and pressure on Saudi Arabia over the death of journalist Jamal Khashoggi.
“An increasingly murky macro picture is clouding the 2019 earnings outlook leaving investors to largely shrug off a solid start to the third quarter earnings season,” said Alec Young, managing director of global markets research at FTSE Russell, as quoted by CNBC. Asian shares have tracked the US lower this morning.
At home, the Footsie inched higher yesterday, adding 7.77 points to close 0.11 percent higher at 6,962.98, as investors digested corporate earnings.
Today’s macroeconomic releases include the German IFO business climate index for October, due out at 09:00 BST. The European Central Bank rate decision will be announced at 12:45 BST, to be followed by the traditional press conference at 13:30 BST. In the US, the nation’s pending home sales are out at 15:00 BST.
Lloyds will post results this morning, with UBS expecting and ‘uneventful’ update. Other blue-chips reporting today include RELX (LON:REL) and WPP (LON:WPP).
FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend in today’s session, include Ferguson (LON:FERG) and ITV (LON:ITV). Reuters’ calculations suggest that ex-divs will take about 1.3 points off the blue-chip index.