The FTSE 100 looks set to start trading little changed, pressured by downbeat leads from the US and Asia, with geopolitical tensions continuing to weigh on investor sentiment around the world. On the corporate front, Ocado (LON:OCDO) is scheduled to update investors on its third-quarter performance this morning.
Muted start ahead
IG’s opening calls suggest that the FTSE 100 will start trading 0.01 percent lower at 7,321 points. In the US, shares fell last night amid fears that a spike in oil could hinder global economic growth. Crude prices have surged, responding to an attack on Saudi Arabia’s oil facilities over the weekend.
CNBC quoted Quincy Krosby, chief market strategist at Prudential Financial, as commenting that “anything that would suggest this is going be painful for the economy” is going to hurt the stock market. Asian shares meanwhile have tracked the US lower this morning, responding to the tension in the Middle East.
“There is certainly a risk-off tone, but I’m surprised the markets are not reacting more,” Tsutomu Soma, general manager of fixed income business solutions at SBI Securities, told Reuters. “The US and other countries have oil reserves, which helps sentiment in a case like this. You also have a lot of positions riding on the Fed meeting.” The US central bank is set to kick off a two-day policy meeting later today.
In the UK, the FTSE 100 started the new week on the back foot, giving up 46.05 points to end trading 0.63 percent lower at 7,321.41, pressured by geopolitical worries.
Today’s macroeconomic releases include Germany’s ZEW economic sentiment index for September, due out at 10:00 BST. In FTSE 100 company news, investors will await to hear if the latest fire at one of Ocado’s customer fulfilment centres dented the online grocer’s sales growth in the third quarter of its financial year.