19th Aug 2015 06:03
LONDON (Alliance News) - UK shares are set to open lower Wednesday, as the market focuses on votes on the Greek debt bailout in several European parliaments, followed by the minutes of the US Federal Open Market Committee after the London market close.
The German parliament is expected to approve the deal, as the Spanish body did on Tuesday.
"While the vote is expected to pass, attention will be focussed on how many German MP?s rebel against the motion, with some estimates putting the numbers as high as 100, as uncertainty over the future involvement of the IMF complicates [German Chancellor] Angela Merkel?s efforts to convince the German population," writes CMC Markets chief market analyst Michael Hewson.
Merkel is to meet lawmakers from her Christian Democratic Union and their Bavarian-based allies, the Christian Social Union, ahead of a session on Wednesday of the German Parliament, which appears set to approve Greece's third bailout in five years.
"I haven't made it easy for myself," Finance Minister Wolfang Schaeuble said in an interview on German state television on Monday. "I have struggled over this, and I think weighing up all the points of view it is the right decision," said Schaeuble, who took a hardline stance in Greek bailout talks, going so far as suggest Greece temporarily exit the currency bloc.
IG says futures indicate the FTSE 100 to open 22 points lower at 6,514.80. The index closed down for sixth consecutive session on Tuesday, slipping 0.4% at 6,526.29.
Wall Street ended lower Tuesday. The DJIA closed down 0.2%, the S&P 500 ended down 0.3% and the Nasdaq Composite finished down 0.6%.
The US Federal Reserve is scheduled to release the minutes from its most recent monetary policy meeting at 1900 BST.
In Asia on Wednesday, the Japanese Nikkei 225 trades down 1.3%. In China, the Hang Seng is down 0.9% and the Shanghai Composite is down 2.3%.
In the economic calendar Wednesday, the eurozone current account is due at 0900 BST. In the US, alongside the FOMC minutes, due at 1900 BST, the US consumer price index and EIA crude oil stocks are expected at 1430 BST and 1530 BST, respectively.
In the UK corporate calendar, Glencore, Admiral Group, Hikma Pharmaceuticals, Mincon Group, Inspired Energy, Hochschild Mining, and EnQuest release half-year results. Imperial Tobacco Group issues a third-quarter interim management statement.
By Daniel Ruiz; [email protected]
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