FTSE 100 preview: Stronger oil and China data to prop up index

on Jul 17, 2017

The FTSE 100 is set to start the week on the front foot, finding support in stronger oil prices, and upbeat growth data out of China. In company news, ITV (LON:ITV) is said to be close to appointing easyJet’s (LON:EZJ) boss as chief executive.

IG’s opening calls suggest that the Footsie will start the day 0.20 percent higher at 7,393 points. The blue-chip index is likely to take cues from Asia, where stocks have advanced this morning following China’s stronger-than-expected GDP. Oil prices meanwhile have climbed on the back of a slowdown in the growth of rigs in the US.
“The slowing pace of increases combined with massive drawdowns last week on both official crude inventory numbers from the US probably explains the positive sentiment in general at the moment,” Jeffrey Halley of futures brokerage OANDA told Reuters.

In the US, stocks rose in the previous session, with investors digesting strong results from JPMorgan Chase, Citigroup and Wells Fargo.
“They all beat on the bottom line. There was a bit of disappointment on the guidance but overall it’s been a good start to the earnings season,” said Nick Raich, CEO of The Earnings Scout, as quoted by CNBC.
The FTSE 100 fell on Friday, shedding 35.05 points to end the session 0.47 percent lower at 7,378.39, giving up some of the week’s gains, with investors digesting company news.

Today’s macroeconomic statements include the eurozone’s final inflation data for June, due out at 10:00 BST. In the US, the Empire State manufacturing index for July is scheduled to be released at 13:30 BST. In corporate developments, Sky News reports that easyJet is set to launch a search for a new chief executive when it confirms that Carolyn McCall is resigning to run ITV, replacing Adam Crozer at the helm of the blue-chip broadcaster.

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