FTSE 100 preview: Index seen lower as oil price dips
The UK benchmark index looks set to give up some of the gains posted in the previous session, pressured by a fall in crude prices, as well as North Korea’s move to launch missile. In company news, J Sainsbury (LON:SBRY) is scheduled to update investors on its first-quarter performance this morning.
IG’s opening calls suggest that the FTSE 100 will start the day 0.36 percent in the red at 7,351 points. Reuters reported that many traders had closed positions ahead of Independence Day, while Brent also faced technical resistance as it approached $50 per barrel. US stocks rose last night, finding support in the banking sector.
“You’re still seeing money coming out of tech and into financials,” said Marc Chaikin, CEO of Chaikin Analytics, as quoted by CNBC. “The rally in financials has real legs.” Asia-Pacific shares meanwhile have been mixed this morning, amid investor caution as North Korea launched a missile, while the Reserve Bank of Australia left interest rates unchanged.
At home, the FTSE 100 started the second half of the year on the front foot, adding 64.37 points to end the session 0.88 percent higher at 7,377.09, boosted by demand for miners and energy shares on the back of upbeat data out of Asia, as well as stronger crude prices.
Today’s macroeconomic agenda includes the UK construction purchasing managers index for June, due out at 09:30 BST. IG reports that the index is expected to have fallen to 55.8 from 56. In the US, markets will be closed today for Independence Day.
In corporate releases, Sainsbury’s is scheduled to post its first-quarter results this morning and analysts expect the grocer to reveal a rise in retail like-for-like sales.