Spread betting firm CMC Markets expects the blue-chip index to open around 90 points lower at 5,490, after closing flat on Thursday
6:50 a.m .: Dive scheduled for Friday
The FTSE 100 index looks set to fall on Friday in tandem with overnight drops in US equity futures and Asian markets after US tech results failed to excite and amid concerns about the spiraling coronavirus infections and the outcome of next week’s presidential election.
Spread betting firm CMC Markets expects the blue-chip index to open around 90 points lower at 5490, after closing flat yesterday, just off 1 point at 5581.75. The Footsie recovered from falls earlier Thursday after New York stocks started with gains after the United States reported a record quarterly GDP growth figure.
Overnight in New York, the Dow Jones Industrials Average closed 139 points, up 0.5% at 26,659, even though it lost 900 points on Wednesday, its biggest drop since June. The larger S&P 500 index recovered 1.2% and the technology-laden Nasdaq Composite rose 1.6%
However, the mood changed after hours of operation in New York City, with US futures falling sharply as the sheer number of tech numbers prompted recent big robbers to take profit.
Naeem Aslam, chief market analyst at Avatrade.com, said: “Big tech stocks have impressed Wall Street by beating their earnings estimates; however, some have failed to excite other measures. For example, Apple smashed sales figures for the third fiscal quarter. The sales figure is 64.7 billion dollars; however, sales from Greater China fell 29%. This is a concern for investors as China is a major market for Apple, and the fact that sales have fallen in China has raised the alarm bells for investors.
“As for the social media giants, Twitter’s revenue was impressive; revenue soared 14% to $ 936 million. Speculators who were looking for a 5% drop in sales may face pain as the stock can attract new investors. However, the disappointing element was that user growth was not impressive which could trigger some profit taking.
“Facebook has shown it has the ability to weather the advertising boycott storm as sales soar 22% to $ 21.5 billion. Monthly active users also confirmed strong growth. ”
With the decline in technology, Asian markets were hammered on Friday, with the Hong Kong Hang Seng index falling 1.8% and the Japanese Nikkei 225 index falling 1.5%.
In London, the corporate spotlight on Friday will be on NatWest PLC (LON: NWB), the latest of the FTSE 100 banks to release third quarter figures.
Around the markets:
- Pound down 0.2% to US $ 1.2905
- Gold up 0.2% to US $ 1,870.15
- down 1% to US $ 37.29
6h45: Early Markets – Asie / Australie
Stocks in the Asia-Pacific region fell sharply after US equity futures fell on Friday, with Dow Jones Industrial Average futures falling 1.91%.
In Japan, the Nikkei 225 fell 1.52% while the South Korean Kospi plunged 2.33% below the flat line.
Hong Kong’s Hang Seng slipped 1.89% in the afternoon with mainland Chinese stocks, the Shanghai Composite down 1.19%.
The Aussie S & P / ASX 200 rose 0.4% at the start of trading, but then forfeited its gains and closed 0.55% lower.
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