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LONDON (Alliance News) - London stocks are set to open higher Wednesday after Greek government sources suggested the country will ask for an extension of its loan agreement with the eurozone.
IG futures indicate the FTSE 100 to open 10.4 points higher at 6,908.5. The FTSE 100 ended up 0.6% at 6,898.13 Tuesday, its highest close since December 1999, shrugging off the lack of progress seen in the Eurogroup meeting with Greece on Monday, as UK inflation fell to its lowest level on record.
Greece will ask Wednesday for an extension of its loan agreement with the eurozone, government sources said, in an apparent turnaround for Athens, which is threatened with insolvency while facing an ultimatum from its European partners.
Austerity measures demanded from Athens in return for the financial help do not apply, the government sources said Tuesday night without elaborating.
That stance left open the critical question of whether Greece's new government is prepared to accept conditions imposed by international creditors on the previous administration in Athens.
Wall Street closed higher Tuesday after returning from a holiday on Monday. The DJIA closed up 0.2%. The S&P 500 also ended up 0.2%, pushing to another record high close of 2,100.34. The Nasdaq Composite closed up 0.1%.
In Asia, the Japanese Nikkei closed up 1.2% after the Bank of Japan kept its monetary policy unchanged, as expected, but lowered its inflation assessment on Wednesday after data showed earlier this week that the country exited recession.
The Hang Seng closed up 0.2% and the Shanghai Composite is closed for the Chinese New Year's Eve holiday.
In the UK corporate calendar, full-year results are out from Coca-Cola HBC and half-year results from construction company Galliford Try.
In the economic calendar the Bank of England will release the minutes from its last policy meeting at 0930 GMT, alongside UK unemployment and wage data. There is US producer prices at 1330 GMT and industrial production at 1415 GMT as well. After the close of London equity markets, the US Federal Reserve will release its minutes from its previous policy meeting at 1900 GMT.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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