FTSE 100 preview: how will the index react to deepening Greek crisis?

on Jun 19, 2015

The FTSE 100 is expected to open marginally higher today despite ongoing market jitters stemming from Greece’s debt crisis. Britain’s benchmark index rallied into the afternoon yesterday, snapping a four-day losing streak and bouncing off a five-month low as a strong start on Wall Street outweighed ongoing concerns about Athens. The Footsie finished 0.41 percent, or 27.33 points, higher at 6,707.88. This morning, the gauge can be expected to add around six points, opening at 6,713, according to trading platform IG.

The day is set to be quiet in terms of economic data and corporate results and investors are likely to digest news from yesterday’s Eurogroup meeting in Luxembourg. Eurozone finance ministers failed to reach a deal and negotiations between debt-stricken Greece and its creditors will continue at a crisis summit on Monday. The European Central Bank (ECB) is to hold a teleconference on the impasse today to discuss extending emergency liquidity to Athens and address expressed doubts whether Greek banks, which have suffered large capital outflows, could open on Monday.
US stocks rose yesterday as the Federal Reserve’s dovish statement from Wednesday afternoon boosted sentiment. Investors also eyed the weaker dollar, which held lower after hitting a one-month low on the Fed statement. The Dow Jones Industrial Average closed one percent, or 180.10 points, up at 18,115.84. The S&P 500 advanced 0.99 percent, or 20.80 points, to 2,121.24, while the Nasdaq surged 1.34 percent, or 68.07 points, to 5,132.95, above its all-time record high of 5,132.52 set in intraday trade on March 10, 2000, during the tech bubble.
Asian shares have also been on the up so far today, as the impressive lead from Wall Street helped to sooth market jitters concerning Greece’s finances. By 08:00 BST, Tokyo’s Nikkei 225 had risen 0.94 percent, or 188.53 points, to 20,179.35. Meanwhile, the MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.58 percent, or 3.44 points, up at 593.94 .

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