27th May 2015 06:01
LONDON (Alliance News) - UK stocks are set to open a cautiously higher Wednesday ahead of a quiet day in the economic calendar, leaving few distractions for investors from Greek debt problems.
Greece is due to make a EUR300 million payment to the International Monetary Fund next week and despite a Greek government spokesman playing down suggestions on Monday that the country is about to default on its debt, investors remained concerned about the situation as a cash-for-reform deal continues to elude the nation.
"Greece appears no closer to agreeing a cash-for-reforms deal with its creditors despite repeated claims from [Greek finance minister Yanis] Varoufakis that a deal is close. Investors may be more encouraged by those claims had we not had such mixed messages from officials recently," says Craig Erlam, senior market analyst at Oanda.
"The one thing that appears clear now is that Greece will not be able to repay EUR300 million to the IMF on 5 June. With EUR1.6 billion in total due to be repaid to the IMF next month that would have given negotiations the strict deadline they in all honestly have been craving if any real progress has been made," he adds.
According to IG, futures indicate the FTSE 100 to open higher at 6,955.0. The index closed down 1.2% at 6,948.99 on Tuesday as strong data from the US reignited investor concern about the potential for a US interest rate hike, sending the dollar higher against other major currencies. The strong dollar weighed heavily on commodities prices, causing the London resources sector to fall.
In New York on Tuesday, the DJIA and the S&P 500 both ended down 1.0%, and the Nasdaq Composite closed down 1.1%.
In Asia Wednesday, the Japanese Nikkei is flat, the Hang Seng trades down 0.8%, and the Shanghai Composite is down 0.2%.
In the UK corporate calendar, there are full-year results from banknote printer De La Rue, self-managed investment trust Caledonia Investments, TR Property Investment Trust, Central and Eastern Europe-focused budget carrier Wizz Air, and real estate investment trust McKay Securities amongst others. Investment manager Brewin Dolphin and property company Urban&Civic both report half-year results, while HSS Hire Group issues a trading statement.
Irish flag carrier Aer Lingus Group late on Tuesday said it has moved a step closer to being taken over by British Airways owner International Consolidated Airlines Group in a EUR1.4 billion deal, after the Irish government gave its backing to the deal.
In a thin economic calendar, there are German Gfk consumer confidence survey results at 0700 BST and French consumer confidence at 0745 BST. Later in the day, there is weekly US MBA mortgage applications at 1200 BST and the Redbook index at 1355 BST.
By Neil Thakrar; [email protected]; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Wizz AirInternational AirlinesTR Property Investment TrustDe La RueCaledoniaBRW.LUANC.LMCKS.LHss Hire