FTSE 100 preview: Index seen opening lower amid global decline

on Dec 9, 2014
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iNVEZZ.com, Tuesday, December 9: The FTSE 100 is expected to open lower today, following significant declines in the US and Asia. Yesterday, Britain’s benchmark index closed just over one percent, or 70.69 points, down at 6,672.15, with Weir Group (LON:WEIR), easyJet Plc (LON:EZJ) and Hargreaves Lansdown Plc (LON:HL) leading the fallers. According to data from IG, the Footsie will open around 41 points lower this morning.

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Meanwhile, US equity markets had a rough trading session yesterday, with the energy sector hit by low oil prices. The price of WTI crude yesterday fell below $63 a barrel for the first time since July 2009.
CNBC quoted Art Hogan, chief market strategist at Wunderlich Securities, as observing:”We’re seeing a last gasp pullback in energy, and that 13 percent of the S&P 500 that is represented by energy companies.”
Bruce Bittles, chief investment strategist at RW Baird & Co, pointed out that over the near term the low oil price benefitted consumers. However, he added: “If it trades below $60 for months, I would think that would be problematic”.
The Dow Jones Industrial Average yesterday closed 0.59 percent lower at 17852.48 points; the S&P 500 fell 0.73 percent to 2060.31; and the technology heavy NASDAQ Composite Index gave up 0.84 percent to 4740.69.
In Asia, stock markets have been tracking their US counterparts in today’s session. Japan’s blue-chip Nikkei 225 Index closed down 0.68 percent at 17,813.38 points, while the Hang Seng Index was two percent lower at 23,569.00 as of 06:23 UTC. In mainland China, hopes for fresh stimulus from the People’s Bank of China helped the Shanghai Composite Index rise earlier in the session, but it couldn’t sustain the rally and fell 0.28 percent to 3,011.73 as of 06:12 UTC.
In Europe, traders will have plenty of economic data to scrutinise, with Germany and France releasing trade figures for October at 07:00 UTC and 07:45 UTC respectively. These reports will be followed by UK industrial production data for October, due out at 09:30 UTC. There are no FTSE 100 companies scheduled to report earnings today.

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