FTSE 100 preview: Index looking up after BoE selloff

Lloyds to stay in focus as MPs call for HBOS fraud probe

FTSE 100 preview: Index looking up after BoE selloff

The UK benchmark index looks set to start the last trading session of the week on the front foot, following yesterday’s fall prompted by the Bank of England (BoE) policy meeting outcome. Lloyds Banking Group (LON:LLOY) will stay in focus today amid prospects for a probe into its handling of a fraud at its HBOS Reading unit.

Index looking up

IG’s opening calls suggest that the FTSE 100 will start the session 0.15 percent higher at 7,568 points, recouping some of the losses posted in the previous session. The Footsie is likely to shrug off a downbeat lead from the US, where shares fell last night on the back of ongoing trade war worries. Asian shares have been mixed this morning, while oil prices have advanced on the back of uncertainty ahead of the OPEC meeting later today.

“The actual decision by OPEC and its partners – which may not actually become apparent until Saturday - is the big one traders are watching,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader, as quoted by Reuters.

In the UK, the Footsie tumbled yesterday following the BoE’s policy meeting, shedding 70.96 points to end the session 0.93 percent lower at 7,556.44. While the central bank left its rates unchanged in line with expectations, the BoE’s chief economist backed an immediate rate hike.

Friday’s releases

Today’s macroeconomic statements include the flash June manufacturing and services purchasing managers’ indices (PMIs) for France, Germany and the eurozone, due out between 08:00 BST and 09:00 BST. On the other side of the Atlantic, Canada’s consumer price index for May will be announced at 13:30 BST, to be followed by the flash US manufacturing and services PMI for June at 14:45 BST.

In company news, Reuters reports that a group of lawmakers have called for an investigation by law enforcement and regulatory agencies into the handling by Lloyds of a fraud at its HBOS Reading unit more than a decade ago and into the role of auditor KPMG.

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