FTSE 100 Forecast Ahead of BP, BT, Shell, Lloyds, IAG, BAT Earnings

Summary:

In this FTSE 100 review, we explain what to expect ahead of the latest earnings by BP, BT, Shell, Lloyds, IAG, BAT, and Ryanair earnings

The FTSE 100 index retreated sharply in the futures market as investors remained concerned about the rising number of Covid cases in the UK. They are also looking ahead to a relatively busy week where some of the leading companies in the index like IAG, BT, BP, Shell, and Lloyds Bank will publish their quarterly results.

Top FTSE index companies to watch

The biggest focus among investors this week will be the number of Covid cases in the UK. During the weekend, the country continued to report rising number of Covid infections. This happened even as the country is among the best performers in terms of vaccinations. Therefore, there are concerns that this growth will likely lead to a slowdown of the economy.

Investors will also be focusing on key companies from the UK and US that will publish their quarterly results and updates. On Monday, Ryanair, the budget airline will publish its results, which will shed light on the state of traveling in Europe. The results will be followed by Wizz Air that will publish on Wednesday and IAG, which will publish its results on Thursday. These results will also have an impact on companies like Rolls-Royce Holdings.

Meanwhile, oil supermajors like BP and Royal Dutch Shell will also release their quarterly results. BP will publish on Tuesday while Shell will release on Thursday. Analysts expect the companies to report strong results, helped by the strong oil prices. They will also focus on their transition to a low-carbon business.

Banks in the FTSE 100 index will also publish their quarterly results. This includes companies like NatWest and Barclays. Further, BT and British American Tobacco (BAT) will release their results.

FTSE 100 technical analysis

The four-hour chart shows that the Footsie index broke out below the key support level at 7,000 in July. It then declined to a low of 6,797 last week as the sell-off intensified. The stock then bounced back and is now hovering near the important resistance at 7,000. It is also hovering at the same level as the 50% Fibonacci retracement level. Therefore, the index will likely resume the upward trend during the week as investors target the next key resistance at 7,100. On the flip side, a drop below 6,900 will invalidate the bearish view.