Last checked at 
LONDON (Alliance News) - UK shares are set to open slightly lower Wednesday, as the market digests the FTSE 100's intraday record high reached on Tuesday after sentiment towards equities was lifted by an agreement to extend Greece's bailout and as Federal Reserve Chair Janet Yellen painted a rosy picture of the US economy but said policy makers would be patient before raising interest rates.
"The fact that the Federal Reserve still has doubts about the US economic recovery after the addition of nearly 1 million jobs in the last four months speaks volumes about the FOMC?s view on the US economy, and suggests that some members are concerned about the effect that falling global prices are having, in respect of inflation expectations in the US," says Michael Hewson, chief market analyst at CMC Markets.
On Tuesday, the market were given an initial lift after Eurozone finance ministers gave a green light to extend the European share of Greece's debt bailout by four months, although they demanded that Athens must still meet reform targets in the coming months to keep receiving funds from its creditors. The International Monetary Fund, another of its creditors, expressed doubt about the reforms pledged by Athens in return for continued loans.
"The agreement, which is being touted as a ?valid starting point? also still needs to go to a vote in the German parliament later this week, where there remains a great deal of scepticism about the new Greek government?s reliability, though it should get enough votes to pass after German finance minister Schaeuble endorsed it," added Hewson.
IG futures indicate the FTSE 100 to open 5 points lower at 6,944.0. The index closed Tuesday up 0.5% at 6,949.63, having reached a new record intraday high of 6,958.89 in late session, joining the German DAX, which also reached a new all-time high in Tuesday's session.
Wall Street also ended higher Tuesday. With the DJIA up 0.5% and the S&P 500 up 0.3%, both reaching new record closing highs, while the Nasdaq Composite was up 0.1%.
In Asia on Wednesday, the Japanese Nikkei 225 closed down 0.1%, and the Hang Seng trades flat. The Shanghai Composite, which opened again after the Chinese New Year holidays, is trading down 0.5%.
China's manufacturing sector rebounded unexpectedly in February as the PMI rose to its highest level in four months, flash figures from Markit Economics showed Wednesday. The HSBC flash manufacturing purchasing managers' index, or PMI, rose to a four-month high of 50.1 in February from 49.7 in January. Economists expected the index to come in at 49.5.
Brent crude is quoted at around USD58.76 a barrel Wednesday, and US benchmark West Texas Intermediate is quoted at USD49.15 a barrel. Gold is quoted early Wednesday at USD1,210.25 an ounce.
Wm Morrison Supermarkets has appointed former Tesco executive David Potts as its new chief executive, a role that will involve a push to turnaround the ailing grocer in the face of tough competition from German discounters Aldi and Lidl.
Potts, aged 57, began his career with Tesco in 1973 and rose to become its UK retail director and head of its Irish business before becoming head of its Asian business, according to Morrisons. He left Tesco in 2011 and has since been acting as a retail expert to several international advisory and private equity businesses.
Meggitt early Wednesday said its Heatric subsidiary has won a multi-million pound deal to supply recuperative heat exchangers for a natural gas-fired pilot plant in the US from NET Power. The engineer of components for the aerospace, defence and energy markets, said Heatric will deliver four printed circuit heat exchangers by the end of April 2016, ready to commission the 50 megawatt demonstration plant in Texas later that year. The plant is aiming to produce low-cost energy with no carbon dioxide emissions.
Also Wednesday, Weir Group, St James's Place, Brit, Hays, Henderson Group, International Personal Finance, Molins, Petrofac, Vitec Group, Man Group, Segro and TSB Banking Group released full year results. Wilmington and Barrat Developments issued half year results, while Whitbread published a fourth quarter trading update. JP Morgan Indian Investment Trust provided an Interim Management Statement.
In the economic calendar Wednesday, UK BBA mortgage approvals data is due at 0930 GMT. In the US, new home sales data is due is at 1500 GMT, while EIA crude oil stocks change is at 1530 GMT.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
