The FTSE 100 Index pulled back this week as the US-Iran war continued and after the UK published a hot consumer inflation report. It dropped to £10,365 from this month’s high of £10,687.
The index will be in the spotlight in the coming week as the Bank of England delivers its interest rate decision, which will hint on what to expect later this year.
This decision will come a day after the UK published strong consumer inflation report, which showed that the UK’s inflation jumped to 3.3% in March.
FTSE 100 Index banks to be in focus
The US banking season has been strong, with most of the top players in Wall Street publishing strong numbers.
They were boosted by the relatively high interest rates and trading revenue, which jumped as the volatility in the market soared.
Focus now shifts to the upcoming UK bank season, which will happen next week. Barclays will be the first bank to release its earnings next week.
The company is expected to report strong numbers because of the rising dealmaking and trading business. Barclays is often comparable with its large American peers because of its investment banking division.
Lloyds Bank will release its numbers on Wednesday, while Standard Chartered and NatWest will release on Thursday and Friday, respectively. HSBC, the biggest European bank by assets, will release its numbers on Monday, May 5.
BP to issue strong guidance as crude oil prices jump
The other top FTSE 100 stock to watch is BP, the second-biggest energy group in the country.
BP stock has done well in the past few months and is now hovering near its all-time high. It has benefited from the ongoing crude oil price surge that is expected to boost its revenue this year.
The upcoming will also be important because of its management. Meg O’Neill, the former CEO of Woodside, recently joined the company as the CEO. She is tasked with turning around the company and boosting its valuation to be in par with its American peers.
Therefore, the upcoming results will see her talk about her strategy to grow its revenue and profitability. The results also come as she failed to get shareholder backing for two board-proposed resolutions.
AstraZeneca, GlaxoSmithKline, Haleon earnings
The other top FTSE 100 stocks to watch are well-known brands like AstraZeneca, GlaxoSmithKline, and Haleon.
AstraZeneca stock price has pulled back in the past few weeks, moving from a high of 207p on April 10 to the current 192p. It has formed a double-top pattern, pointing to an eventual retreat after it releases its results on Wednesday.
Similarly, GlaxoSmithKline, popularly known as GSK, has formed a double-top-like pattern, signaling potential retreat. Analysts expect the companies to publish mixed earnings. While sales are expected to rise modestly, their costs may keep rising.
Other FTSE 100 stocks to watch
There will be more FTSE 100 stocks in the spotlight next week. Travel-related companies like IAG, Rolls-Royce, and EasyJet will be in focus as investors assess the impact of the war on jet fuel costs. Signs that the war is escalating will lead to more declines.
Some of the other top companies that will publish their numbers are Beazley, Unilever, and JD Weatherspoon.
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