The UK benchmark index looks set to start the new week on the back foot, with downbeat leads from the US and Asia likely to weigh on sentiment. Standard Chartered (LON:STAN) will be in focus today as it agreed to extend its deferred prosecution agreement.
Downbeat start ahead
IG's opening calls suggest that the FTSE 100 will open 0.57 percent lower at 7,658 points. In the US, shares fell on Friday, with downbeat results from Twitter and Intel, hot on the heels of Facebook’s disappointing update, pressuring the tech sector.
“When growth companies, particularly tech companies, are priced to perfection, the price for imperfection is quite high,” said Michael Arone, chief investment strategist at State Street Global Advisors, as quoted by CNBC. “Meanwhile, the reward for beating on earnings is much lower than usual.”
Asian shares have tracked the US lower this morning, further pressured by investor caution ahead of central bank meetings later this week.
In the UK, the FTSE 100 ended the previous session in positive territory, adding 38.14 points to close 0.50 percent higher at 7,701.31, with investors digesting the latest batch of corporate earnings.
Today’s macroeconomic statements include eurozone business confidence data for July, due out at 10:00 BST, to be followed by Germany’s preliminary consumer price index for the same month at 13:00 BST. In the US, the nation’s pending home sales data for June will be announced at 15:00 BST.
While there are no FTSE 100 releases scheduled for today, investors will have a lot to look forward to later during the week, including results by Centrica (LON:CNA), BP (LON:BP), Lloyds (LON:LLOY), RBS (LON:RBS) and Barclays (LON:BARC). In other news, Reuters reports that StanChart, which reports results tomorrow, has agreed to a further extension of its US deferred prosecution agreement until the end of December this year.