24th Jun 2015 06:01
LONDON (Alliance News) - UK shares are set to open slightly higher Wednesday, as investors keep an eye on the Greek debt situation among other issues on the agenda at an EU leaders summit taking place in Brussels starting this evening.
IG says futures indicate the FTSE 100 to open 4 points higher at 6,838.6 points. The index also closed higher on Tuesday, up 0.1% at 6,834.87.
EU leaders face a full plate at their summer summit, replete with challenges straining their bloc - starting with the debilitating economic situation in Greece and the deadly migration crisis in the Mediterranean Sea.
The diplomatic tensions with Russia will be on the menu too, along with the European identity crisis in Britain. Hopes for a blockbuster free trade deal with the US and dreams of a stronger eurozone union will round off their two days of talks.
"This moment in the EU's development is not a dress rehearsal," its president and summit chair, Donald Tusk, warned in a recent speech. "We must do what needs to be done, now, with a strong sense of purpose, or Europe goes backwards."
Greece has proven to be the biggest challenge in recent weeks, finding itself once again on the brink of bankruptcy despite five years and billions of euros in bailout packages. The government of leftist Prime Minister Alexis Tsipras, dead set on ending economic austerity measures for his country, has clashed with eurozone partners in the search for a solution.
Tusk has in the past strived to keep Greek negotiations off summit agendas, given their technical complexity and political sensitivity. But the issue looks set to overshadow the EU summit on Thursday and Friday, amid last-ditch negotiations on a breakthrough agreement.
In Asia on Wednesday, the Japanese Nikkei 225 trades up 0.4%. Meanwhile, the Hang Seng is flat and the Shanghai Composite is trading up 0.2%.
Wall Street ended slightly higher Tuesday. The DJIA, the S&P 500 and the Nasdaq Composite closed all up 0.1%.
In the UK corporate calendar Wednesday, Stagecoach and Market Tech Holdings release full-year results, while Ultra Electronics Holdings issues a trading update.
In the economic calendar, German IFO readings for June are due shortly after at 0900 BST. UK mortgage approvals information for May is scheduled to be published by the British Bankers' Association at 0930 BST. In the afternoon, US mortgage applications data are set to be released by the Mortgage Bankers Association at 1200 BST. US GDP data for the first quarter are due to be published at 1330 BST, at the same time as US personal consumption expenditure data.
By Daniel Ruiz; [email protected]
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