FTSE 100 preview: Stocks to edge higher ahead of Greek reform proposals

on Jul 9, 2015

The FTSE 100 is expected to open in positive territory today, building on yesterday’s gains, as investors eagerly await new reform proposals from Greece. Britain’s benchmark index last night closed 0.91 percent higher at 6,490.70. This morning, the gauge will open around four points higher at 6,494, according to trading platform IG.

On Tuesday, the Eurozone gave Greece until midnight tonight (23:00 BST) to present a detailed reform plan ahead of a summit of all 28 members of the European Union on Sunday, at which the leaders will decide whether to accept the plans and negotiate a third aid programme for the debt- stricken country. Failure to reach a deal on reforms with Europe would make a Grexit from the euro more likely.
Away from the ongoing Greek saga, in focus will be the Bank of England’s (BoE) monetary policy decision, to be announced at 12:00 BST. Analysts expect no change in interest rates. On the other side of the ocean, US initial jobless claims report is due out at 13:30 BST. Today’s corporate calendar includes interim trading updates from housebuilder Barratt Development (LON:BDEV) and food and retail group Associated British Foods (LON:ABF).
US stocks closed lower yesterday, as continued concerns about Greece and an extended Chinese market rout weighed on investor sentiment. Stocks briefly trimmed losses as the New York Stock Exchange resumed floor trading after a near-four hour halt due to unspecified ‘technical’ issues. The Dow Jones Industrial Average closed 1.47 percent down at 17,515.42, the S&P 500 shed 1.66 percent to 2,046.69, while the Nasdaq finished 1.75 percent lower at 4,909.76.
Asian shares rebounded this morning as a slide in battered Chinese stocks was stemmed, at least temporarily, while the safe-haven yen was nudged off highs scaled against the dollar. By 07:06 BST, Tokyo’s Nikkei 225 had climbed 0.34 percent to 19,805.09. Meanwhile, the MSCI’s broadest index of Asia-Pacific shares outside Japan was 2.29 percent higher at 556.57.

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