FTSE 100 preview: Index poised for upbeat start as oil rises
The FTSE 100 looks set to kick off the week in positive territory, finding support in stronger oil. Lloyds Banking Group (LON:LLOY) will be in focus this Monday, with investors eyeing a court case over the bank’s takeover of HBOS.
Upbeat start to week
IG’s opening calls suggest that the Footsie will start the week 0.25 percent higher at 7,554 points. The blue-chip index is likely to take cues from Asia, where stocks have surged this morning, with oil jumping on the back of tensions between the Iraqi government and Kurdish forces. Reuters reports that Iraqi forces began moving towards oil fields held by Kurdish Peshmerga fighters near the oil-rich city of Kirkuk.
In the US, stocks soared to record highs on Friday, with investors digesting corporate earnings.
“People are generally expecting a strong earnings season,” said Tom Martin, senior portfolio manager at Globalt, as quoted by CNBC, adding that investors were worried about the market slipping as earnings season moved forward.
The FTSE 100 lost ground on Friday, shedding 20.80 points to end the session 0.28 percent lower at 7,535.44. GKN (LON:GKN), whose trading update disappointed investors, was the session’s biggest faller in percentage terms, shedding 9.86 percent to close at 318.00p.
There are no major macroeconomic releases out of Europe to guide the markets this morning. In the US, the Empire manufacturing index for October is due out at 13:30 BST.
In company news, the Guardian reports that a £600-million case is due to begin in the high court this week which is expected to lead to five former Lloyds directors being asked to explain the circumstances that led to the rescue of HBOS during the height of the financial crisis.
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