FTSE 100 preview: Index looking up amid oil price recovery
The UK benchmark index looks set to start the week on the front foot, taking cues from Asia, where stocks have gained ground on the back of stronger crude prices. On the corporate front, Barclays’ (LON:BARC) is seen facing a £1.2-billion hit from a lawsuit related to its Qatari fundraising during the financial crisis.
IG’s opening calls suggest that the FTSE 100 will start the day 0.19 percent higher at 7,438 points. The week has also started positively in Asia where shares have advanced, tracking oil higher. Tatsufumi Okoshi, senior economist at Nomura Securities, told Reuters that there was ome support near $40 in West Texas Intermediate.
“People think that US shale development will stop if it falls below $40,” the analyst pointed out. In the US, equities rose on Friday, with the energy sector recovering.
“It’s pretty tough to knock this market down,” said Marc Chaikin, CEO of Chaikin Analytics, as quoted by CNBC. “There has been some very healthy rotation within the sectors in between earnings seasons.”
At home, the Footsie closed subdued on Friday, shedding 15.16 points to end the session 0.20 percent lower at 7,424.13, pressured by ongoing concerns over oil.
Today’s macroeconomic announcements include Germany’s IFO business climate index for June, scheduled to be released at 09:00 BST. On the other side of the Atlantic, US durable goods orders, and the Chicago Federal index for May are due out at 13:30 BST.
In company news, The Sunday Times reports that Barclays could face a £1.2-billion hit from its legal battle with City dealmaker Amanda Staveley who advised on the lender’s multibillion-pound rescue at the height of the financial crisis. Royal Bank of Scotland Group (LON:RBS) will also be in focus as Reuters reported that the bailed-out bank is planning to cut 443 jobs dealing with business loans and many of them will move to India.