FTSE 100 preview: Index seen little changed after US rout

Vodafone to post interims

FTSE 100 preview: Index seen little changed after US rout

The UK benchmark index looks set to start the session little changed, following a downbeat lead from the US, and with investors digesting the latest developments between the US and China. In company news, Vodafone (LON:VOD) is scheduled to update investors on its interim performance.

Footsie seen little changed

CNBC reports that the FTSE 100 is seen up by one point at 7,054. In the US, shares fell last night, pressured by the tech sector and financials, amid continuing global trade worries.

“This is a time to consider reducing risk rather than adding risk,” said Tom Martin, senior portfolio manager at Globalt, as quoted by CNBC. “It’s not like we’re at the start of a cyclical bear market, but being cautious” would be wise. Asian shares meanwhile have been mixed this morning, as the South China Morning Post reported that China’s top trade negotiator Liu He may visit Washington.

“This news is being perceived as a positive outcome,” said Rodrigo Catril, markets strategist at National Australia Bank, told Reuters. “So, we have seen a broad improvement in sentiment across markets.”

In the UK, the Footsie retreated in the previous session, following a positive start, eventually giving up 52.26 points to close 0.74 percent lower at 7,053.08. British American Tobacco (LON:BATS) was the session’s biggest faller, shedding 10.62 percent to 2,962.50p, following a report in the Wall Street Journal that the US was mulling over a ban on menthol cigarettes.

Tuesday’s agenda

Today’s macroeconomic releases include UK’s employment data due out at 09:30 GMT, and Germany’s economic sentiment ZEW index for November at 10:00 GMT.

In company news, Vodafone is expected to post a drop in revenue and profits when it updates investors on its half-year performance. Other blue-chips reporting today include Land Securities (LON:LAND), Experian (LON:EXPN) and Taylor Wimpey (LON:TW).

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