FTSE 100 may not be impressed with oil price drop

As noted here a little earlier this morning, the FTSE 100 did close higher yesterday, but it failed to set a daily close above the 7,500 handle. That was despite the index rising above that level after the opening and reaching 7,533 earlier in the day. The index later closed at 7,486, with a gain of 46 points on the session. The lower UK inflation data clearly helped the opening outlook, but was it low enough? Well, perhaps not and despite what the markets think right now, the truth of the matter is that UK inflation is still way above target and yet to get close to falling back inside it. The lower oil price yesterday and this morning is not helping the opening outlook today either. That is eclipsing any benefit the drop back in the GBP/USD might have on the opening this morning too. So, as things currently stand, the FTSE 100 is set to open a little lower shortly and it will be interesting to see if the bulls will emerge again and try to take the index back above 7,500 and beyond