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FTSE 100 set for lacklustre start to the new week

Published: 15:39 04 Apr 2016 AEST

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The FTSE 100 is expected to get off to a lacklustre start with oil and gas stocks likely to be affected by a slide in the crude price.

The spread betting firms are predicting the index will rise just  two points on open to 6,148.05.

The picture was mixed overnight in Asia overnight, with most of the major markets buoyed by America’s payroll numbers on Friday.

Japan was the notable exception amid increasing worries about the state of its economy. Exporters were hardest hit as the Nikkei 225 lost 0.5%.

Here in the UK the fall of oil prices below US$40 a barrel will likely have an impact on BP and Shell, which still exert quite a sway on the Footsie.

Brent was off just under 1% at US$38.30, while US crude fell 1.1% to US$36.40.

The downward momentum was created by a seeming lack of accord over a freeze to oil production from those inside and outside OPEC.

It is thought Saudi Arabia, the driving force behind the oil cartel, will turn the spigots down only if Iran also agrees to follow suit.

After the deluge of results ahead of the March 31 reporting cut-off date, corporate news is expected to slow to a trickle this week.

The big scheduled release comes from the roadside assistance group AA.

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