FTSE 100 preview: Dip in oil to pressure index

The FTSE 100 is seen opening lower this morning, giving up some of the previous session’s gains, as oil retreated. Barclays (LON:BARC) will be in focus today amid prospects for a protest vote at its upcoming annual general meeting (AGM) early next month.

FTSE 100 seen lower

IG’s opening calls suggest that Britain’s blue-chip index will start trading 0.23 percent lower at 7,506 points. A fall in oil is likely to weigh on the Footsie following a rise earlier in the week as the US signalled that it would end all exemptions for sanctions against Iran, with the comments fuelling supply concerns. Reuters reports that analysts have said that global oil markets remained adequately supplied thanks to ample spare capacity from OPEC, Russia and the US.

Stateside, shares surged last night as investors digested upbeat quarterly results amid the ongoing earnings season.

“Among the key companies that have reported, most of them have beaten expectations,” said Peter Cardillo, chief market economist at Spartan Capital Securities, as quoted by CNBC. “That means we’re probably going to escape an earnings recession. That will be key for the market to rally from here.” Asian shares, however, have slipped lower despite the upbeat US lead.

At home, the Footsie surged yesterday as investors returned from the long holiday weekend, adding 63.19 points to close 0.85 percent higher at 7,523.07. The blue-chip index found support in oil, with crude prices rising amid supply concerns.

Wednesday’s agenda

Today’s macroeconomic statements include Germany’s IFO business climate index for April, due out at 09:00 BST. On the other side of the Atlantic, Bank of Canada’s rate decision will be announced at 15:00 BST.

On the corporate front, Associated British Foods (LON:ABF) and Antofagasta (LON:ANTO) are scheduled to post updates this morning. In other news, The Times reports that shareholders in Barclays have been advised to vote against its remuneration report after the bank’s chief executive was embroiled in a long-running investigation into his pursuit of an internal whistleblower.