FTSE 100 preview: Index looking up after upbeat US lead

on Jun 29, 2017

The FTSE 100 index looks set to start the session on the front foot, taking cues from the US where stocks rose last night, led higher by banks. In company news, Burberry (LON:BRBY) has become the latest blue-chip to face an investor row over executive pay.

IG’s opening calls suggest that the Footsie will start the day 0.49 percent higher at 7,424 points. The blue-chip index is likely to take cues from the US where shares got a lift from the banking sector.
“A part of the equity rise today is to make up for what the markets thought to be excess pessimism,” said Komal Sri-Kumar, president of Sri-Kumar Global Strategies, as quoted by CNBC. Asia meanwhile has tracked the US higher this morning.

In the UK, the Footsie shed 46.56 points to end the previous session 0.63 percent lower at 7,387.80, pressured by weaker oil, as well as a report by the Financial Conduct Authority on asset managers. Comments by Bank of England Governor Mark Carney that an interest rate hike was probably necessary further weighed on the blue-chip index.
Today’s macroeconomic releases include eurozone business confidence data for June, due out at 10:00 BST, to be followed by Germany’s preliminary consumer price index for June at 13:00 BST. In the US, the final estimate for the nation’s first-quarter gross domestic product is scheduled to be released at 13:30 BST and IG reports that growth is expected to be 1.2 percent quarter-on-quarter. In other news, The Times reports that Burberry is facing a fresh investor row over pay after two influential City corporate governance groups criticised share awards made to the retailer’s top executives Christopher Bailey and Julie Brown.
Blue-chips, whose shares will trade without the attraction of their latest dividend in today’s session, include Babcock International (LON:BAB), British Land (LON:BLND), Coca-Cola HBC (LON:CCH), International Consolidated Airlines Group (LON:IAG) and Royal Mail (LON:RMG). Reuters’ calculations suggest that ex-divs will knock 2.26 points off the Footsie.

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