FTSE 100 preview: Index looking up as oil remains in focus

on Jun 22, 2017

The UK benchmark index looks set to open marginally higher this morning, with investors eyeing the latest oil price movements. GlaxoSmithKline (LON:GSK) will be in focus today as it won $235 million in a patent trial.

IG’s opening calls suggest that the Footsie will start the day 0.12 percent higher at 7,457 points. US stocks closed lower last night, as oil prices failed to rebound from the previous session’s hefty fall.
“It just seems to be a fair amount of uncertainty as to where the bottom is,” Daniel Deming, managing director at KKM Financial, told CNBC, adding that the break below $43.80 had caused more worries for technical traders. Asian shares, however, have moved cautiously higher this morning, with crude prices inching higher.

“The time for contrarian trades in oil is fast approaching, but I would want to see some stability in price and the technicals start to become more convincing,” said Chris Weston, chief market strategist at IG, as quoted by Reuters.
The Footsie closed lower yesterday, shedding 24.92 points to end the session 0.33 percent lower at 7,447.79, with the fall in oil weighing on sentiment and pressuring energy shares.

Today’s macroeconomic announcements include the flash June consumer confidence index for the eurozone, due out at 15:00 BST. In company news, Reuters reports that a US jury has ordered Teva Pharmaceutical Industries to pay GSK more than $235 million for infringing a patent covering its blood pressure drug Coreg. Diageo (LON:DGE) meanwhile has agreed to buy George Clooney’s high-end tequila brand Casamigos in a deal valuing it at up to $1 billion.
Blue-chips, whose shares will be trading without the attraction of their latest dividend in today’s session, include Experian (LON:EXPN), Land Securities (LON:LAND), Mediclinic (LON:MDC) and United Utilities (LON:UU). Reuters’ calculations suggest that ex-divs will knock 1.88 points off the Footsie.