FTSE 100 Opens Lower, US Markets Prepare For More Inflation Data

Published on
  • FTSE 100 opens lower
  • US Futures rise ahead of CPI data later this week
  • Halifax house price index fall 2.4% in July
  • Brent oil hovers around 4-month high

FTSE 100 Opens Lower

UK markets opened down this morning as investors maintain an element of caution ahead of a week of further earnings reports. US stock market futures are a touch higher this morning, as investors prepare for another week of corporate earnings and a fresh round of inflation data.

Last Friday’s jobs read showed lower jobs growth than economists had predicted, given a small indication that tightening measures are starting to yield some results. Softening inflation reads this week could help push the Fed in favour of more patience, which would likely be met by a positive reaction from stock markets. With around 90% of earnings already out, results are 4% better than consensus with some big names like Walt Disney Co (NYSE:DIS) coming this week.

UK companies reporting this week include Entain PLC (LON:ENT), which owns popular gaming sites like PartyPoker, where markets are expecting to see double-digit top-line growth from half-year results. Housebuilder Persimmon plc (LON:PSN) is battling the tricky housing market, latest news from Halifax pointed to a 2.4% drop in prices over July in a third straight month of declines. Margins are under pressure from higher costs and falling prices, results should shed light on the impact and give an update as to whether it’s on track to deliver the close to 9000 completions expected over the year.

Brent Oil Hovers Around 4-Month High

Oil continues to hover around $86 a barrel with recent prices being propped up by announcements from Saudi Arabia and Russia that they would be extending their combined 1.3m barrels per day supply cuts. The combination of stimulus measures in China, an improving outlook for a soft landing in the US and supply cuts are enough to support prices at these levels. Oil giant Saudi Aramco reported a steep drop in second-quarter profits today, as prices remain below some of the booming levels seen last year.”

Article by Matt Britzman, equity analyst at Hargreaves Lansdown