FTSE 100 preview: Index looking up amid stronger oil

on Apr 23, 2019

The UK benchmark index looks set to open higher this morning, finding support in higher oil prices and a positive lead from Asia. Banks will be in focus on the corporate front, amid news about Royal Bank of Scotland (LON:RBS) and FTSE 100 peer Barclays (LON:BARC).

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FTSE 100 seen higher

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IG’s opening calls suggest that the Footsie will start trading 0.44 percent higher at 7,492 points. A rise in oil is set to boost market sentiment today, with crude jumping amid concerns over global supply as the US announced a further clampdown on Iranian oil exports.

“The Trump administration has pulled a shocker by declaring no renewal of Iranian fuel sanction waivers to all of the eight countries that were exempted,” analysts at OCBC Treasury Research wrote in a morning note, as quoted by CNBC. “The non-renewals come as a surprise because ahead of the US elections next year, many expected the Trump administration to prioritise keeping gasoline prices low against keeping a strong stance on international diplomacy.”

Asian shares meanwhile have climbed marginally higher this morning. At home, the Footsie ended Thursday’s trading little changed, giving up 11.44 points to close 0.15 percent lower ahead of the long Easter weekend.

Tuesday’s agenda

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Today’s macroeconomic statements include the flash eurozone consumer confidence data for March, due out at 15:00 BST, alongside new home sales for the same month in the US. There are no blue-chips scheduled to update investors on their performance this morning.

In other news, The Times reports that the property division of RBS’ controversial restructuring unit out dividends of almost £450 million as it sold off customers’ assets. The Financial Times meanwhile has revealed that Barclays is planning to cut bonuses for investment bankers as it looks to shore up its defence against activist investor Edward Bramson.

Oil Royal Bank of Scotland Commodity Energy Indices