FTSE 100 preview: Index seen steady after upbeat leads
The UK benchmark index looks set to start the week on the front foot, taking cues from the US and Asia. In company news, the group’s chief executive has admitting that Rolls-Royce Holdings (LON:RR) was fighting for survival due to profit warnings and corruption.
Upbeat start ahead
IG’s opening calls suggest that the Footsie will start the session 0.54 percent higher at 7,284 points. The blue-chip index looks set to take cues from the US where shares rallied on Friday with investors staying focused on interest rates.
“We have a champagne problem,” said Nick Raich, CEO of The Earnings Scout, as quoted by CNBC. “The economy is running too hot and that brings fear of higher rates. But that’s better than having to jump-start an economy that’s running cold.” Asian shares have advanced this morning following the strong US lead.
At home, the Footsie closed little changed on Friday, shedding 7.98 points to end the session 0.11 percent lower at 7,244.41, with investors continuing to focus on company reports amid the ongoing earnings season.
There are no major macroeconomic releases out of Europe to provide direction this morning. On the other side of the Atlantic, the US Chicago Fed index for January is due out at 13:30 GMT, to be followed by the nation’s existing home sales for January at 15:00 GMT. On the corporate front, Hammerson (LON:HMSO) and Bunzl (LON:BNZL) are scheduled to update investors on their performance this morning.
In other news, The Times reports that Warren East had admitted that Rolls-Royce had been in a battle for survival during the depths of its financial crisis in 2015 and 2016 with revelations about long-running corruption which led to record fines leaving the workforce believing that bribery was how the company did business.