The FTSE 100 looks set to open lower this morning, pressured by recession fears, as well as by a string of companies going ex-dividend. Barclays (LON:BARC) will be in focus today as Reuters reported that the lender is no longer providing banking services to cryptocurrency exchange Coinbase.
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Index seen lower
IG’s opening calls suggest that the FTSE 100 will start trading 0.47 percent lower at 7,115 points. The index is set to extend the previous session’s losses with recession fears weighing on sentiment in the US and Asia. The blue-chip index fell sharply yesterday, giving up 103.02 points to close 1.42 percent lower at 7,147.88, reacting to a fall in the yields on 10-year US and UK government bonds.
“It’s quite possible that we see a recession towards the second half of next year at the earliest,” IG Markets analyst Chris Beauchamp commented, as quoted by Reuters. “I wouldn’t say it’s the beginning of the end here.” In individual movers, Admiral (LON:ADM) rallied more than four percent as investors digested its half-year update.
Today’s macroeconomic releases include UK retail sales data for July due out at 09:30 BST. IG reports that sales are expected to have climbed 3.2 percent last month, slowing down from a 3.85-percent gain in June. In the US, the nation’s retail sales data will be out at 13:30 BST. With the earnings season winding down, no blue-chips are scheduled to post results this morning.
FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend, include Anglo American (LON:AAL), Ashtead (LON:AHT), Aviva (LON:AV), Evraz (LON:EVR), HSCB (LON:HSBA), Legal and General (LON:LGEN), Mondi (LON:MNDI), Phoenix (LON:PHNX), Pearson (LON:PSON), Royal Bank of Scotland (LON:RBS), Royal Dutch Shell (LON:RDSA, LON:RDSB), Segro (LON:SGRO) and Standard Life Aberdeen (LON:SLA). According to Reuters’ calculations, ex-divs will knock 29.9 points off the Footsie.