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FTSE 100 preview: Index to start Friday higher after upbeat leads

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The FTSE 100 looks set to open lower this morning, following upbeat leads from the US and Asia. Rolls-Royce Holdings (LON:RR) will be in focus today amid reports that it has been hit by fresh issues with its Trent 1000 engine programme.

Index seen steady

Reuters reports that according to financial bookmakers, the Footsie will start trading eight points higher at 7,553. The blue-chip index is likely to track the US higher, as shares on the other side of the Atlantic rose last night, boosted by the tech sector.

“This is a case of the strong leading the market again,” said Marc Chaikin, CEO of Chaikin Analytics, as quoted by CNBC. “Heading into year-end, the stocks that initially led us higher earlier in the year will be the ones to do so once again.” Asian shares have been mostly higher this morning.

In the UK, the Footsie rose yesterday, gaining 33.95 points to close 0.45 percent higher at 7,545.44, helped by weakness in the pound.

Friday’s calendar

Investors have a lot to look out for on the macroeconomic front this morning, staring with German unemployment data for September, due out at 08:55 BST. The final estimate for the UK’s second-quarter gross domestic product will be released at 09:30 BST and IG reports that the estimate is forecast to be 1.3 percent year-on-year and 0.4 percent quarter-on-quarter. The eurozone’s consumer price index for September is out at 10:00 BST, to be followed by US personal income and spending data for August at 13:30 BST. Chicago’s purchasing managers’ index for September is out at 14:45 BST, while the final Michigan consumer sentiment index for September will follow at 15:00 BST.

In company news, Reuters reports that Rolls-Royce had said that turbine blades of its problematic Trent 1000 engines were wearing out faster than expected. Sky News meanwhile has revealed that Royal Bank of Scotland (LON:RBS) has briefed staff on its plans to create a challenger to fintech groups such as Monzo and Revolut. easyJet (LON:EZJ) meanwhile has issued a pre-closing trading statement.

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