FTSE 100 preview: Index seen lower despite upbeat leads

on Sep 26, 2019

The FTSE 100 looks set to open lower this morning, with investors set to ignore upbeat leads from the US and Asia. In blue-chip company updates, defence giant BAE Systems (LON:BA) has won a $2.7-billion contract with the US.

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Muted start ahead

IG’s opening calls suggest that the FTSE 100 will start trading 0.18 percent lower at 7,277 points. The index is set to shrug off an upbeat lead from the US where shares rose last night on the back of hopes for a resolution of the trade conflict between Washington and Beijing. Asian shares meanwhile have tracked the US higher.

“Every time there is a hint of positive about trade talks markets rise,” said William O’Loughlin, portfolio manager at Rivkin Asset Management, as quoted by Reuters. “It feels like the markets are looking to rally. It seems the markets haven’t caught on to the fact these headlines about trade bounce around from one day to the next.”

In the UK, the FTSE 100 closed little changed in the previous session, giving up 1.44 points to end trading 0.02 percent lower at 7,289.99, with investors staying on the sidelines amid political worries on both sides of the Atlantic.

Thursday’s agenda

This Thursday’s calendar includes Germany’s GfK consumer confidence index for October, due out at 07:00 BST. In the US, the nation’s final second-quarter gross domestic product data will be released at 13:30 BST, to be followed by pending home sale numbers at 15:00 BST.

FTSE 100 companies, whose shares will be trading without the attraction of their latest dividend today, include Hargreaves Lansdown (LON:HL), Intertek Group (LON:ITRK) and Smurfit Kappa (LON:SKG). Reuters’ calculations suggest that ex-divs will knock 1.1 points off the Footsie.

In other FTSE 100 corporate news, The Times reports that BAE Systems has won a multibillion-dollar American government defence contract for production of the Advanced Precision Kill Weapon System.


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