FTSE 100 preview: Index seen steady as investors eye US elections

The UK benchmark index looks set to open marginally higher this morning, following mixed leads, and with investors eyeing corporate earnings and the elections on the other side of the Atlantic. Wm Morrison Supermarkets (LON:MRW) is one of the blue-chips reporting today.

FTSE 100 seen little change

IG’s opening calls suggest that the Footsie will start the session 0.10 percent higher at 7,121 points. In the US, shares were mixed last night as investors digested corporate news. Asian shares have also been mixed amid investor caution ahead of the midterm elections in the US.

CNBC reports that Democrats are expected to regain control of the House while Republicans hold on to a slim majority in the Senate. Reuters meanwhile notes that if Republicans retain their House majority, global stocks are likely to rally on hopes of more tax cuts.

“There’s a lot of headlines that investors are going to have to sift through this week,” Ryan Nauman, market strategist at Informa Financial Intelligence, told CNBC. “With everything going on, I expect more volatility” as we get closer to the election. Nauman, however, reckons that the volatility should subside after the election. 

“After the last five midterms, markets have done pretty well after the elections,” he pointed out.

At home, the Footsie started the week on the front foot, gaining 9.72 points to stand 0.14 percent higher at 7,103.84.

Tuesday’s events

There are no major macroeconomic releases out of Europe to guide the market further this morning. Investors meanwhile will monitor the midterm elections on the other side of the Atlantic.

In company reports, Morrisons is set to post its third-quarter results. Other FTSE 100 groups set to update investors on their performance today include Associated British Foods (LON:ABF), Imperial Brands (LON:IMB), Randgold Resources (LON:RRS) and Direct Line (LON:DLG).