FTSE 100 preview: Index to start new week little changed after selloff

HSBC to continue earnings season

FTSE 100 preview: Index to start new week little changed after selloff

The UK benchmark index looks set to start the week marginally higher, following the previous session’s selloff. In company news, HSBC Holdings (LON:HSBA) will continue the FTSE 100 banking reporting season.

Index seen steady

IG’s opening calls suggest that the Footsie will start the new week 0.05 percent higher at 6,943 points. The blue-chip index is likely to take cues from Asia, where shares have steadied this morning. Chinese stocks, however, have underperformed the region following the latest downbeat data from the world’s second-largest economy. Reuters, however, reports that analysts have warned of more volatility.

“Sentiment is going to continue to dominate market direction in the short term,” Nick Twidale of Rakuten Securities, told the newswire. “Earnings season continues [...] and political tensions in the United States, Italy, Germany and the UK will continue to add to volatility in their respective markets as well as contributing to overall global flows.”

The FTSE 100 posted a hefty fall on Friday, giving up 64.54 points to close 0.92 percent lower at 6,939.56, pressured by geopolitical and global trade worries. US shares also dipped in the previous session, as investors digested earnings.

There were "high expectations" for this earnings season, King Lip, chief strategist at Baker Avenue Asset Management, told CNBC, adding that the earnings were “not coming in as great as people had suspected”.

Monday’s releases

There are no major macroeconomic releases out of Europe to guide the market further this morning. In the US, the nation’s personal income and spending data for September will be out at 12:30 GMT. On the corporate front, investors will digest HSBC’s third-quarter update. In other news, the Guardian reports that Lloyds Banking Group (LON:LLOY) is to pay up to £150 million to female members of its pension scheme following a landmark court ruling.

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