LONDON (Alliance News) - UK shares are set to open lower Wednesday, following a decline on Wall Street Tuesday and a dearth of significant economic data scheduled for the day.
"A negative lead from the US combined with mixed moves in Asia overnight appears to be weighing on European futures ahead of the open. The lack of many significant economic data or news flow won?t be helping matters and may well provide the backdrop for consolidation in the markets this week," says Oanda senior market analyst Craig Erlam.
IG futures indicate the FTSE 100 to open 10 points lower at 1,009.9. On Tuesday, the FTSE 100 hit a new intraday record high of 7,065.08, but then lost ground and eventually ended down 0.3% at 7,019.68. The blue-chip index failed to make a new closing high and snapped a six-day winning streak, with energy and mining stocks again amongst the worst-performing shares after some weak Chinese economic data.
On Wall Street Tuesday, the DJIA closed down 0.6%, the S&P 500 down 0.6%, and the Nasdaq Composite down 0.3%.
Brent crude is quoted at around USD55.05 a barrel Wednesday, and US benchmark West Texas Intermediate is quoted at USD47.31 a barrel. Gold is quoted early Wednesday at USD1,189.60 an ounce.
In Asia on Wednesday, the Japanese Nikkei 225 closed up 0.2%, and the Hang Seng trades up 0.5%. The Shanghai Composite is trading down 0.4%.
Hong Kong billionaire Li Ka-shing's Hutchison Whampoa agreed to acquire Spanish telecom operator Telefonica's UK mobile business O2 for about GBP10.25 billion, including deferred upside interest sharing payments of up to GBP1 billion. The deal is expected to close by the end of June 2016.
The deal will see the combining of Britain's second-largest wireless provider O2 with Britain's fourth-largest wireless carrier 3 UK, which is owned by Hutchison. Telefonica owns O2, which it acquired in early 2006. The deal will create the no 1 mobile operator in the UK with almost 33 million customers on a combined basis.
In the economic calendar Wednesday, German IFO business climate data is due at 0900 GMT, while UK BBA Mortgage approvals data is at 0930 GMT. In the US, Durable Goods orders data is at 1230 GMT, while EIA Crude Oil Stocks change is at 1430 GMT.
In the corporate calendar, Balfour Beatty, Card Factory, Moss Bros Group, Hilton Food Group, Chime Communications, Johnston Press, John Laing Group and Anglo Pacific Group all release full-year results. Meanwhile, Bellway and Bowleven publish half-year results. United Utilities Group and Topps Tiles issue trading statements.
By Daniel Ruiz; danielruiz@alliancenews.com
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