FTSE 100 preview: Index set to track Asia higher

Allison Rose could take top job at RBS

FTSE 100 preview: Index set to track Asia higher

The UK benchmark index looks set to open higher this morning, tracking Asia higher, and finding support in stronger oil. Royal Bank of Scotland Group (LON:RBS) will be in focus today amid reports that it could appoint Allison Rose as its chief executive next year.

IG’s opening calls suggest that the FTSE 100 will start the day 0.42 percent higher at 7,409 points. The index is likely to take cues from Asia where stocks have advanced this morning amid subsiding geopolitical tensions.

“With North Korea seemingly holding back on its intercontinental ballistic missile test for now, there is a small degree of risk relief in market, resulting in the paring of long positions in safe havens,” Chang Wei Liang, a strategist at Mizuho Bank, explained in a note, as quoted by CNBC. Reuters meanwhile reports that oil has firmed up after the Saudi oil minister discussed possibly extending a pact to cut global oil supplies beyond March next year with his Venezuelan and Kazakh counterparts.

In the US, however, stocks lost ground in the previous session, pressured by a selloff in insurers ahead of Hurricane Irma’s landfall in Florida.

At home, the Footsie closed subdued on Friday, shedding 19.38 points to end the session 0.26 percent lower at 7,377.60, pressured by a fall in blue-chip miners, which tracked copper prices lower. BHP Billiton (LON:BLT) was the session’s biggest faller in percentage terms, dipping 3.77 percent to 1,402.50p.  

There are no major macroeconomic releases to guide the market this morning. On the corporate front, Associated British Foods (LON:ABF) is forecast to reveal a small rise in sales at its Primark unit for the last quarter of its financial year. In other news, The Sunday Times reports that Alison Rose, head of RBS’ commercial and private banking, is considered the internal favourite to succeed Ross McEwan at the helm of the bailed-out lender. 

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