Informa on track to meet expectations, while HSBC reported profits plummet

London open

The FTSE 100 is expected to open 70 points higher on Monday, after closing down 1.43% at 6,693.26 on Friday.

Stocks to watch

HSBC reported that profits in the third quarter fell 86% compared to last year due to a disposal of its Brazilian bank, but underlying profits were higher in all four of its businesses. The FTSE 100 bank lifted revenues and continued to cut costs in the three months to 30 September, said the Brazil sale had seen its common equity tier-1 capital ratio increase to 13.9% and complete almost two thirds of the $2.5bn share buyback announced as a result as well as support the future payment of dividends.

Hammerson has exchanged contracts for the disposal of Westmorland Retail Park in Northumberland to Arch Commercial Enterprise for £36m. The sale price represents a net initial yield of 5.8% and is slightly below book value as at 30 June 2016.

Business intelligence, exhibitions, events and academic publishing group Informa issued a trading update on its performance for the nine months to 30 September on Monday, with the board claiming to remain on track to meet full-year expectations. The FTSE 100 firm’s group chief executive Stephen A. Carter said the recent addition of Penton increased the company’s US scale and reach, further strengthening its capabilities in the global exhibitions and business intelligence spaces. “Together with our growth acceleration plan, it increases the balance and breadth across the portfolio, underpinning the potential for future growth.”

Newspaper round-up

Bourses across Asia and assets sensitive to the outcome of the US election bounced on a perception in the market that Hillary Clinton’s chances of being elected president had firmed. The FBI said on Sunday it would take no action against Mrs Clinton following its investigation of new emails related to a probe into her use of a private server. - Financial Times

Investors and businesses are being warned to brace for potentially huge swings in share prices and currency rates in the early hours of Wednesday morning as one of the most seismic political decisions in decades reverberates around global markets. The big City investment banks are staffing up for a rollercoaster trading session with asset prices expect to gyrate wildly on the thinnest of exit poll evidence before moving more emphatically in one or other direction as the US election result becomes more certain. - The Times

Thousands of Tesco Bank accounts have been compromised and customers have seen hundreds of pounds wiped from their balances in a wave of fraudulent activity. The bank, which has more than 7 million customers, issued a text alert to account holders late on Saturday after it observed suspicious activity in multiple current accounts and moved to block some customer cards. - Guardian

The Government is prepared to use “carrots and sticks” to “disrupt” Britain’s house-building industry and break the “stranglehold” of the big developers, to encourage smaller developers and the faster building of more new homes. Calling for “far more competition” to change “a market that is not diversified enough”, Communities Secretary Sajid Javid has escalated his criticism of the UK’s large house-builders and developers, ahead of a Government white paper on housing supply expected next month. - Telegraph

Chinese investors have increased their focus on London’s property market, partly because of the fall in the pound and partly because there are signs of an end to China’s own property bubble. Sales of homes in the capital’s most exclusive areas to Chinese buyers have risen since the Brexit vote, while investment into commercial property from China is on track to grow this year, even as other investors draw back. - Financial Times

US close

Wall Street slipped into the red in the final two hours of trading, extending its losing streak to nine consecutive days, the longest such stretch since 1980, amid election jitters and despite what economists hailed as a positive reading on the US jobs market.

The Dow Jones Industrial Average dipped 0.24% or 42.39 points to 17,888.28 points, the S&P 500 slipped 0.17% or 3.48 points to 2,085.18 points and the Nasdaq fell 0.24% or 12.04 points to 5,046.37 points.

Oil prices were also down amid reports of tensions between Iran and Saudi Arabia that some worry might foil a potential deal to slash production.

West Texas Intermediate crude oil futures gave back 56 cents to end the day at $44.07.

Data from the Labor Department showed that hiring rose in October as wage growth accelerated at its strongest pace since 2009.

Non-farm payrolls increased a seasonally adjusted 161,000 from an upwardly revised gain of 191,000 in September, while the jobless rate fell to 4.9% in October from 5.0% as the labour force contracted.