The FTSE 100 looks set to open higher this morning, following the previous session’s hefty selloff which saw the blue-chip index close barely above the 7,000-point mark. On the corporate front, Reuters reports that Royal Dutch Shell (LON:RDSA) is seeking to sell a stake in a Venezuela joint venture.
Index looing up
IG’s opening calls suggest that the Footsie will start the last trading day of the week 0.65 percent higher at 7,053 points. Investors are likely to shrug off a downbeat lead from the US, where the ongoing equities rout continued last night amid prospects for higher interest rates and worries over trade and global growth.
“It’s a momentum correction, not a portfolio correction,” said Joe Terranova, chief market strategist at Virtus Investment Partners, as quoted by CNBC. “While we have a bias to believe 2008 could happen again, I don’t think this is the case.” Asian shares have been mixed this morning following the extended US selloff.
“There still appears to be downside risk to the market amid worries the Sino-U.S. trade war may be slowing down global growth,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, told Reuters.
At home, the Footsie tumbled 138.81 points to end the session 1.94 percent lower at 7,006.93, pressured by the global equities selloff.
There are no major macroeconomic releases out of Europe this morning to provide direction to the market. In the US, the preliminary Michigan consumer sentiment index for October will be announced at 15:00 BST. In company news, Reuters reports that Shell is negotiating the sale of its stake in a Venezuelan oil joint venture to Paris-based Maurel & Prom as it looks to scale down its crude business.