Equities By Region Indices UK

FTSE 100 preview: Index to shrug off downbeat leads

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The FTSE 100 looks poised for a positive start this Friday, shrugging off downbeat leads from the US and Asia. Investors meanwhile will eye the monthly US jobs report scheduled to be released later today. On the corporate front, Unilever (LON:ULVR) has said that it is withdrawing its proposal to simplify its dual-headed structure.

Index looking up

IG’s opening calls suggest that the UK benchmark index will start trading 0.22 percent higher at 7,435 points. In the US, shares fell sharply last night, as the 10-year Treasury note yield rose to its highest level since 2011.

“The level of the rates does not concern us,” said Steve Chiavarone, portfolio manager at Federated Investors, as quoted by CNBC. “That said, moving more than 10 basis points in two days is a different story. Pace matters and it bears watching.”

Chiavarone further noted that “when you move at this pace in a short amount of time, it’s natural for the market to take a breather”. Asian stocks have also been shaky this morning, with investors eyeing the rise in US Treasury yields.

“Rapidly rising Treasury yields are rocking equity markets around the globe, with high price-to-earnings tech stocks leading the decline,” Yasuo Sakuma, chief investment officer at Libra Investments, told Reuters.

In the UK, the FTSE 100 posted a hefty fall in the previous session, giving up 91.94 points to close 1.22 percent lower at 7,418.34, pressured by expectations for a rate hike on the other side of the Atlantic.

Friday’s calendar

Today’s major macroeconomic event is the US non-farm payrolls for September, due out at 13:30 BST. IG reports that 188,000 jobs are expected to have been created last month from a reading of 201,000 a month earlier, while the unemployment rate is expected to have slipped from 3.9 percent to 3.8 percent.

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