The UK benchmark index looks set to start the week flat, following a marginally positive lead from Asia. WPP (LON:WPP) will be in focus today, with The Times reporting that the group’s chairman is facing a shareholder backlash over the ad giant’s ousting of former CEO Martin Sorrell after a leading advisory group recommended that investors oppose his re-election at next month’s annual meeting.
Footsie seen flat
IG’s opening calls suggest that the FTSE 100 will start the session at 7,725 points, flat in percentage terms. In Asia, markets have mostly climbed higher, while oil prices have edged lower, following last week’s highs prompted by US President Donald Trump’s announcement that he will withdraw the country from the Iran nuclear deal. In the US, shares ended the previous session higher, on the back of a rally in energy shares.
“Energy is going to lead the market,” Marc Chaikin, CEO of Chaikin Analytics, told CNBC. “I don’t think the current price of oil is pricing in the full ramifications of the Iran deal.”
In the UK, the FTSE 100 rose on Friday, adding 23.58 points to end the session 0.31 percent higher at 7,724.55, posting its longest winning streak in nearly 13 years.
“Equities should also continue to benefit from growth and we maintain our positive view, adding UK equities to our most preferred markets on restored value, and the market’s defensive nature,” said the Investment Strategy Department of Credit Suisse, as quoted by Reuters.
Quiet Monday on the cards
There are no major macroeconomic releases due out this morning to further guide the markets. On the corporate front, British Gas owner Centrica (LON:CNA) is due to update investors on its performance, in the wake of last week’s news that its chairman was planning to step down.