FTSE 100 preview: Downbeat start to November on the cards

BT to post second-quarter results

FTSE 100 preview: Downbeat start to November on the cards

The FTSE 100 looks set to start November on the back foot, pressured by a stronger pound, despite positive leads from the US and Asia. BT Group (LON:BT.A) is scheduled to post its second-quarter update this morning.

Footsie to open lower

IG’s opening calls suggest that Britain’s blue-chip index will start trading 0.72 percent in the red at 7,084 points. Reuters reports that the FTSE 100 is set to underperform other European indices as the pound jumped following a report in The Times that the UK has secured a deal that would give its financial services firms continued access to European markets after Brexit.

In the US, shares soared last night, boosted by strong earnings, while still posting a loss for the month.

“The drop this month came out of nowhere. Usually that’s a sign of a correction and not a bear market,” Craig Birk, CIO at Personal Capital, commented, as quoted by CNBC. “Usually a bear market rolls more slowly.” In Asia, stocks have been trading mostly higher this morning.

At home, the Footsie ended October with a rally which saw the benchmark index gain 92.25 points to close 1.31 percent higher at 7,128.10.

Thursday’s agenda

Today’s macroeconomic statements include the UK’s manufacturing purchasing managers’ index (PMI) for October, due out at 09:30 GMT. IG reports that the index is expected to have climbed 54.6 from 53.8. The Bank of England meeting decision and inflation report will be released at 12:00 GMT. In the US, the nation’s ISM manufacturing PMI for October is due out at 14:00 GMT. Today’s corporate updates continue with BT and Shire (LON:SHP).

Unilever (LON:ULVR) is the only blue-chip company, whose shares will be trading without the attraction of their latest dividend in today’s session, knocking 1.46 points off the FTSE 100, according to Reuters calculations.

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