The FTSE 100 looks set to start the new week little changed with downbeat leads from the US and Asia likely to weigh on sentiment. London-listed lenders will be in focus today following the results from the European Union’s latest stress test.
Index seen little changed
IG’s opening calls suggest that the Footsie will start trading 0.04 percent higher at 7,097 points. In the US, stocks were volatile on Friday as investors digested the prospects for a trade deal between Washington and Beijing.
“It’s still all about trade,” said JJ Kinahan, chief market strategist at TD Ameritrade, as quoted by CNBC. “Most of the trading we’re seeing is related to earnings or trade.” The market also focused on the latest non-farm payrolls report which showed that the world’s biggest economy had added 250,000 new jobs last month, surpassing analyst expectations.
Asian shares meanwhile have fallen into the red this morning amid US-China trade worries and ahead of tomorrow’s mid-term elections in the US.
At home, the Footsie fell on Friday, giving up 20.54 points to close 0.29 percent lower at 7,094.12 amid facing optimism over the US-China trade relations.
Today’s macroeconomic statements include the UK services purchasing managers’ index (PMI) for October, due out at 09:30 GMT and IG reports that the index is expected to have inched higher last month, from 53.9 to 54. On the other side of the Atlantic, the US non-manufacturing PMI for the same month will be announced at 15:0 GMT.
On the corporate front, investors will eye blue-chip lenders following the latest EU-wide health check. Reuters notes that Barclays (LON:BARC) and Lloyds (LON:LLOY) were the surprise laggards, although none of the 48 lenders tested failed a major capital threshold.