FTSE 100 preview: Uptrend to continue after strong US close

The UK benchmark index looks set to start the new week on the front foot, building on the previous session’s gains, following an upbeat close in the US on Friday and a positive session in the Asia-Pacific. Royal Bank of Scotland Group (LON:RBS) will remain in focus today following the latest twist over the Financial Conduct Authority’s (FCA) report into the company’s controversial restructuring unit.

Footsie looking up

IG’s opening calls suggest that the FTSE 100 will start the session 0.15 percent higher at 7,306 points. With little macroeconomic data to guide the markets, the Footsie is likely to take cues from the US, where shares rose on Friday, posting a strong gain for the week.

“I think the foreseeable future will be marked by volatility,” Dan McMahon, director of equity trading at Raymond James, told CNBC. But “we are still of the mind that we're in a secular bull market”. Asia-Pacific shares meanwhile have advanced this morning, while markets in the Greater China region remain closed for the Lunar New Year holiday.

In the UK, the FTSE 100 rose on Friday, adding 59.89 points to close 0.83 percent higher at 7,294.70. The index ended the week on an upbeat note, following a hefty global equities selloff earlier during the month.

Quiet Monday

There are no major macroeconomic releases out of Europe this morning, while US markets will remain closed for President's Day. On the corporate front, Reckitt Benckiser (LON:RB) is scheduled to update investors on its performance this morning. In other news, The Telegraph reports that the FCA has handed over a damning report into RBS’ mistreatment of small business customers to MPs, having decided not to make it public.