Traders are expected to return from the long Easter holidays in cautious fashion this morning following weak showings yesterday by US and European markets and falls today in Asia, with the mood unsettled by geopolitical risks, notably over North Korea’s sabre-rattling.
Spread betting firm London Capital Group expects the FTSE 100 index to open around 10 points lower at 7,317, having shed 21.4 points last Thursday, the final session before the four-day Easter break in the UK.
US stocks rallied on Monday, with the Dow Jones bouncing over 180 points higher, recouping a similar-sized drop last Thursday to notch up its first gain in four session.
But Asian stocks fell back again today as escalating tensions over North Korea dragged sentiment lower.
Following North Korea's failed missile launch on Sunday, tensions have built up again amid concerns that the isolated state may soon test another nuclear bomb or missile.
Traders will have little else to distract them today, with no important economic data due for release and the corporate diary in the UK virtually empty aside from a trading update from emerging markets-focused fund manager Ashmore group PLC (LON:ASHM).
However, some more big US company earnings will provide interest later today, - including numbers from Bank of America, Goldman Sachs, and Johnson & Johnson - and the UK corporate calendar starts to ratchet up later this week.
First-half results are due from Primark clothing chain to Silver Spoon sugar group Associated British Foods plc (LON:ABF) tomorrow, together with trading updates from luxury goods firm Burberry PLC (LON:BRBY), and miner Rio Tinto PLC (LON:RION).
Later in the week, consumer goods giants Unilever PLC (LON:ULVR) and Reckitt Benckiser PLC (LON:RB.), satellite broadcaster Sky PLC (LON:SKY), and department stores operator Debenhams will also release results.
Significant events expected Tuesday April 18:
Trading Statement: Ashmore group PLC (LON:ASHM)
AGMs/EGMs: Apax Global Alpha Ltd (LON:APAX)
Around the markets
- Sterling: US$1.2473, down 0.6%
- Gold: US$1,214.60 an ounce, down 0.3%
- Brent crude: US$55.55 a barrel, up 0.3%