FTSE 100 preview: Index looking up as Greek parliament passes austerity bill

on Jul 16, 2015

Britain’s blue-chip index is expected to open higher after the Greek parliament this morning voted in favour of a new bailout plan. Investors have a lot to look forward to on the corporate front today, including Sports Direct’s (LON:SPD) full-year results.

CNBC reports that the Footsie is seen opening 32 points higher at 6,785. Greece’s parliament passed strict austerity measures needed to begin talks on a new bailout agreement, with the vote revealing a serious split in the ruling Syriza party. A government spokesman, however, told Reuters this morning that the priority remained to secure the deal, suggesting that there would be no immediate move towards new elections.
Asian shares traded higher this morning, finding support in the Greek vote. In the US, stocks closed marginally lower last night. Federal Reserve Chair Janet Yellen started her two-day testimony before the Congress, saying that the US central bank was on track to raise rates this year as long as the economy evolved as expected.
At home, the Footsie closed flat at 6,753.75 points yesterday, with investors awaiting the outcome of the Greek vote. Burberry (LON:BRBY) was among the most notable blue-chip fallers after revealing a slowdown in quarterly sales. Burberry’s share price closed 2.59 percent lower at 1,578.00p.
Today’s main macroeconomic event is the ECB rate decision due at 12:45 BST, and the subsequent press conference at 13:30 BST. In the US, Yellen is due to continue her testimony before the Congress, starting at 15:00 BST.
In corporate news, Sports Direct is expected to unveil a strong full-year performance this morning. Other blue-chip companies reporting today include Rio Tinto (LON:RIO), Anglo American (LON:AAL), Experian (LON:EXPN) and Dixons Carphone (LON:DC). No FTSE 100 companies are scheduled to go ex-dividend today.

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