LONDON (Alliance News) - UK shares are set to open higher Wednesday, as investor's focus beyond Greece to the minutes of the Bank of England's most recent policy meeting, due at 0930 BST.
After the London market close, attention then will turn to the US, where the Federal Reserve announces its interest rate decision and economic projections at 1900 BST. It will be followed by Fed Chair Janet Yellen's press conference at 1930 BST.
"Bank of England minutes are likely to be no more than a footnote on the day?s events, but given recent comments by Monetary Policy Committee members Martin Weale and Ian McCafferty about the potential for rate rises in the near term, the overall tone of the minutes could well give clues as to how the rest of the MPC lines up in that regard," says Michael Hewson, chief markets analyst at CMC Markets UK.
"Both Weale and McCafferty were in a minority who were in favour of a rate increase last year, before coming back to consensus this year, which means they are likely to be early bellwethers once again with respect to a change in tone," writes Hewson.
IG says futures indicate the FTSE 100 to open 13 points higher at 6,723.10. The index closed down 0.4% at 6,710.10 on Tuesday, having hit its lowest level since the end of January at 6,656.90 in intraday trade.
Meanwhile, Lloyds Bank believes that "while a hike in interest rates at today?s US Federal Open Market Committee meeting looks highly unlikely, the meeting could still provide clues about the timing of a first move."
"An important indication of the likelihood of a relatively early rise in rates will be the extent to which the post-meeting statement is more upbeat about recent economic developments compared to the last meeting in April," the bank says.
Wall Street ended higher Tuesday. The DJIA and the S&P 500 ended up 0.6% and the Nasdaq Composite closed up 0.5%.
In Asia on Wednesday, the Japanese Nikkei 225 trades down 0.1%. Meanwhile, the Hang Seng is up 0.7% and the Shanghai Composite is trading down 0.2%.
Also in the economic calendar Wednesday, UK unemployment and earnings data are due at 0930 BST. Eurozone construction data are at 1000 BST, and US EIA crude oil stocks are at 1530 BST.
In a quiet UK corporate calendar, there are full-year results from housebuilder Berkeley Group Holdings, online bookmaker Betfair Group, structural steel company Severfield, and agricultural supplies and specialist retail business Wynnstay Properties.
By Daniel Ruiz; danielruiz@alliancenews.com
Copyright 2015 Alliance News Limited. All Rights Reserved.
Berkeley Group (BKG)
Severfield (SFR)
Wynnstay Props. (WSP)