LONDON (Alliance News) - UK shares are set to open higher Monday in a light day in terms of significant economic data, in which the focus will be in the continuing Greek debt negotiations.
European Commission President Jean-Claude Juncker rejected a phone call Saturday from Greek Prime Minister Alexis Tsipras asking for a new round of talks on Athens' deepening debt crisis, but that does not mean the matter won't weigh on an upcoming G7 summit of the world's major economies in Bavaria.
Juncker turned down Tsipras' request, saying that there had been no new developments in the crisis, which threatens to result in cash-strapped Greece defaulting, according to dpa information.
But the mood between Greece and its creditors has soured after Tsipras lashed out at Athens' creditors in a speech to parliament on Friday.
"A surprisingly strident speech from Tsipras to the Greek parliament late on Friday, in which he accused EU creditors of 'absurd' behaviour with respect to the recent new proposals put forward with the help of the EU Commission on the part of the institutions, has once again highlighted the extent of the chasm between the two sides," says Michael Hewson, chief market analyst at CMC Markets UK.
"It does seem that Tsipras is getting closer to the point of becoming boxed in by some in his party who are not prepared to countenance any form of acquiescence to creditor?s demands, which could make it almost impossible to get any agreement through the Greek parliament, even if he were able to reach a compromise with the creditors," Hewson writes.
IG says futures indicate the FTSE 100 to open 16 points higher at 6,820.20 . The index closed Friday down 0.8% at 6,804.60, and was down 2.6% for the week as a whole, having only risen on Wednesday.
In Asia on Monday, the Japanese Nikkei 225 trades flat. Meanwhile, the Hang Seng is up 0.5%, and the Shanghai Composite is trading up 1.6%.
China's foreign trade surplus increased by more than expected in May, as imports fell faster than exports, figures from the Customs Office showed Monday.
The trade surplus of the country came in at USD59.49 billion in May, more than the USD44.8 billion expected by economists. Exports fell 2.5% year-over-year in May, while it was expected to decline by 4.4%. Imports plunged 17.6%, much more than a 10.0% fall expected by economists.
CMC Markets' Hewson highlights the drop in imports, as the data has slid for the sixth consecutive month. "This sharp slide increases concern that Chinese authorities face an uphill struggle to meet their 7% Gross Domestic Product target, and furthermore point to a Chinese economy where domestic demand appears to be sliding sharply," he says.
Wall Street ended lower Friday. The DJIA closed down 0.3%, and the S&P 500 ended and the Nasdaq Composite ended down 0.2%.
In the corporate calendar Monday, Drax Group issues an interim management statement, while Falkland Islands Holdings, Phoenix IT Group and Abzena publish full-year results and IDOX releases half-year results.
In the economic calendar, German industrial production is due at 0700 BST, while eurozone Sentix Investor Confidence is at 0930 BST. In the US, labor market conditions are due at 1500 BST.
By Daniel Ruiz; danielruiz@alliancenews.com
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