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FTSE 100 preview: Index seen little changed as investor worries remain

The FTSE 100 looks set to open marginally lower this morning, following a volatile session in the US and amid ongoing political worries in Italy. In company news, HSBC Holdings (LON:HSBA) has agreed a $765-million settlement with the US over mis-sold mortgage-backed products.

Index seen little changed

IG’s opening calls suggest that the Footsie will start the session 0.04 percent lower at 7,235 points. In the US, the major indices swung between gains and losses last night as investors mulled over a rise in Treasury yields and prospects for higher interest rates. In Asia, shares have been subdued this morning.

“As uncertainty continues to prevail in financial markets across the world, many investors are staying on the sidelines until more clarity emerges in US Treasury and Chinese markets,” said Yasuo Sakuma, chief investment officer at Libra Investments, as quoted by Reuters.

In the UK, the FTSE 100 closed little changed yesterday, inching 4.26 points higher to close at 7,237.59. Sentiment was subdued yesterday as the International Monetary Fund cut global economic growth forecasts for this year and next.

Wednesday’s releases

Today’s macroeconomic statements include the UK’s trade balance for August and gross domestic product for the same month. IG reports that the trade balance is expected to see a deficit of £1.8 billion, while GDP is expected to have grown 0.2 percent month-on-month from 0.3 percent. In the US, the nation’s producer price index for September will be unveiled at 13:30 BST.

In corporate developments, the BBC has reported that HSBC has reached a $765-million (£582.3-million) settlement in the US over its sale of mortgage-based securities during the run-up to the financial crisis. British American Tobacco (LON:BATS) meanwhile has appointed a new chief marketing officer.

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