FTSE 100 preview: Stronger oil to continue to support index

on Oct 17, 2017

The UK benchmark index looks set to open higher this morning, finding support in stronger oil amid ongoing tension in the Middle East. Barclays (LON:BARC) will be in focus today amid reports that the probe of its chief executive Jes Staley over his attempts to uncover a whistle-blower is likely to take until December.

Stronger oil to give Footsie a lift

IG’s opening calls suggest that the FTSE 100 will start the session 0.13 percent higher at 7,536 points. The benchmark index is likely to get a boost from a rise in oil, as Reuters reported that crude prices held near their highest levels in almost three weeks after Iraqi government forces captured the major Kurdish-held oil city of Kirkuk in a response to a Kurdish independence referendum, raising worries about oil supply.

US shares rose last night, with investor attention staying focused on the earnings season, while Asian shares have been steady this morning. At home, the Footsie lost 8.47 points to end the session 0.11 percent lower at 7,526.97, pressured by a hefty fall in ConvaTec (LON:CTEC), whose shares gave up 26.60 percent after the company warned on revenue.

On today’s agenda

Today’s macroeconomic releases include the UK consumer price index (CPI) for September, due out at 09:30 BST. IG reports that the index is expected to have climbed to 3.1 percent year-on-year from 2.9 percent, but only by 0.3 percent compared to 0.6 percent in August. The eurozone CPI for September and the German economic sentiment ZEW index are due out at 10:00 BST.

On the corporate front, Pearson (LON:PSON) and Merlin Entertainments (LON:MERL) are scheduled to update investors on their recent performance. In other news, Bloomberg reports that UK regulators probing Barclays boss Jes Staley’s attempts to unmask a whistle-blower will probably take until the end of the year to conclude their investigation.