FTSE 100 preview: Strong leads to prop up index

Watchdog takes action against Barclays over PPI failings

FTSE 100 preview: Strong leads to prop up index

The UK benchmark index looks set to open higher this morning, finding support in strong leads from the US and Asia amid the ongoing earnings season. Barclays (LON:BARC) will be one of the FTSE 100 companies in focus today amid criticism over its handling of payment protection insurance (PPI).

Index looking up

IG’s opening calls suggest that the FTSE 100 will open 0.10 percent higher at 7,672 points. The Footsie is likely to find support in a positive lead from the US where shares rose last night on the back of results and corporate news.

“The positive surprises in the earnings season are strong and that’s helping the overall sentiment in the market,” said Quincy Krosby, chief market strategist at Prudential Financial, as quoted by CNBC, adding that the biggest takeaway from this earnings season was that while tax cuts were clearly a positive for the bottom line, “the top line has also been good”.

Asian shares have tracked the US higher this morning. Reuters, however, reported that Chinese equities were expected to remain volatile with Beijing’s trade feud with Washington showing little signs of de-escalation.

In the UK, the FTSE 100 started the week little changed, gaining 4.68 points to close 0.06 percent higher at 7,663.78. Blue-chip miners proved a drag on the index, tracking copper prices lower.

Tuesday’s calendar

There are no major macroeconomic releases out of Europe to provide further direction this morning. On the corporate front, investors will eye results by Hargreaves Lansdown (LON:HL), Intertek (LON:ITRK) and Holiday Inn and Crowne Plaza owner InterContinental Hotels Group (LON:IHG). In other news, the Competition and Markets Authority has taken action against Barclays after it failed, for a second time, to send annual reminders to PPI customers.

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