FTSE 100 preview: Index to open lower after US shares drop

easyJet to post rise in profits

FTSE 100 preview: Index to open lower after US shares drop

The UK benchmark index looks set to open lower this morning, pressured by a selloff on the other side of the Atlantic, as well as continued political uncertainty at home. In company developments, investors will be looking out for low-cost carrier easyJet’s (LON:EZJ) full-year results this morning.

FTSE 100 seen lower

IG’s opening calls suggest that the Footsie will start trading 0.20 percent lower at 6,987 points.    The blue-chip index is likely to take cues from the US where shares dropped sharply last night, dragged down by the technology sector.

“It’s going to require a recovery in tech to make things happen,” said Greg Luken, CEO of Luken Investment Analytics, as quoted by CNBC. “I think where we are in tech, we’re going to see tough sledding towards the end of the year. I think stocks that are down will see further selling pressure.” Asian shares have tracked the US lower this morning.

Reuters meanwhile reports  that at home, British Prime Minister Theresa May had vowed to stick to her draft European Union divorce deal.

“We have in view a deal that will work for the UK and, let no one be in any doubt, I am determined to deliver it,” May said in a speech to Britain’s premier business lobby, the CBI, as quoted by the newswire.

The FTSE 100 started the week little changed yesterday, giving up 12.99 points to close 0.19 percent lower at 7,000.89, with investors digesting the latest political developments.

Tuesday’s agenda

There are no major macroeconomic releases out of Europe this morning. In the US, the nation’s housing starts and building permits for October will be announced at 13:30 GMT. On the corporate front, easyJet is expected to post a rise in profits when it updates investors on its full-year performance this morning. Compass Group (LON:CPG) is also reporting today.

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