Last checked at 
LONDON (Alliance News) - UK shares are set to open flat Wednesday, as investors continue to keep a wary eye on the negotiations between Greece and its European creditors, with Purchase Manager's Index readings from Asia, Europe and the US also in focus.
"The new deal is expected to be presented today, but given it appears little different in tone or red lines, it seems unlikely that after all these weeks and months of toing and froing between Athens and Brussels that any agreement will be forthcoming," says Michael Hewson, chief market analyst at CMC Markets UK.
A draft agreement between Greece and its international creditors to unlock much-needed cash in exchange for tough reforms by Athens is close to being completed, officials said Tuesday. The last details of the proposed debt deal are being intensively negotiated, eurozone officials said.
Greece is due to make a repayment of EUR300 million to the International Monetary Fund on Friday. However, whether a deal between Athens and its creditors - its eurozone partners and the IMF - can be hammered by the end of the week remains open.
Meanwhile, Eurogroup Chairman Jeroen Dijsselbloem said Tuesday it is "not even theoretically possible" for Greece's lenders to resume support this week while discussions on its economic reforms are ongoing, Reuters reported.
IG says futures indicate the FTSE 100 to open 1 point lower at 6,927.0. The index closed down 0.4% at 6,928.27 Tuesday, due to the continued uncertainty over the Greek debt negotiation, despite a strong performance from the mining sector.
Wall Street also ended lower Tuesday. The DJIA closed down 0.2%, while the S&P 500 and the Nasdaq Composite both ended down 0.1%.
In Asia on Wednesday, the Japanese Nikkei 225 trades down 0.5%, while the Hang Seng trades up 0.8%. The Shanghai Composite is trading down 0.9%.
The FTSE Committee will announce Wednesday its index review decision based Tuesday's closing prices. Aerospace and defence company Meggitt is likely to drop out of the FTSE 100 after a volatile March and a weak share performance in April and May, while satellite communications service provider Inmarsat is set to return to the blue-chip index following a strong run in its shares since the previous index review.
Often, the likely moves become apparent in the days ahead of the index review. However, this time the changes to the FTSE 100, outside of Inmarsat and Meggitt, are too close to call. Wm Morrison Supermarkets, Sports Direct International and Aggreko are amongst the other potential candidates for demotion from the FTSE 100.
In the corporate calendar Wednesday, International Consolidated Airlines Group releases its May traffic statistics, while Dixons Carphone issues a fourth-quarter trading statement. WH Smith also provides a trading statement, and Workspace Group, Quindell, Advanced Oncotherapy, Caffyns and Shires Income publish full-year results. Alternative Networks and EasyHotel release half-year results.
In the economic calendar, Markit Services PMI readings from Italy is due at 0845 BST, as the likes of Germany, the eurozone and the UK are due at 0855 BST and 0900 BST and 0930 BST, respectively. Eurozone's retail sales are due at 1000 BST, while the European Central Bank decision is expected at 1245 BST. In the US, Markit Services and Composite PMI is due at 1445 BST, while EIA crude oil stocks is due at 1530 BST.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
