LONDON (Alliance News) - London share prices are set to open flat Wednesday, as investors keep an eye on the Greek debt situation among other issues on the agenda at an European Union leaders summit taking place in Brussels starting this evening.
The EU officials agenda in Brussels looks full for the next three days, as a eurogroup meeting is scheduled for Wednesday at 2000 BST, while the European Council meeting is starting on Thursday at 1600 BST until Friday afternoon.
IG says futures indicate the FTSE 100 to open 1 point higher at 6,835.50 points. The index also closed higher on Tuesday, up 0.1% at 6,834.87.
EU leaders face a full plate at their summer summit, replete with challenges straining their bloc - starting with the debilitating economic situation in Greece and the deadly migration crisis in the Mediterranean Sea.
The diplomatic tensions with Russia will be on the menu too, along with the European identity crisis in Britain. Hopes for a blockbuster free trade deal with the US and dreams of a stronger eurozone union will round off their two days of talks.
"This moment in the EU's development is not a dress rehearsal," its president and summit chair, Donald Tusk, warned in a recent speech. "We must do what needs to be done, now, with a strong sense of purpose, or Europe goes backwards."
Greece has proven to be the biggest challenge in recent weeks, finding itself once again on the brink of bankruptcy despite five years and billions of euros in bailout packages. The government of leftist Prime Minister Alexis Tsipras, dead set on ending economic austerity measures for his country, has clashed with eurozone partners in the search for a solution.
Tusk has in the past strived to keep Greek negotiations off summit agendas, given their technical complexity and political sensitivity. But the issue looks set to overshadow the EU summit, amid last-ditch negotiations on a breakthrough agreement.
"Amid heightened optimism of a possible agreement, any deal would still need the approval of Greek - in the first instance - and German lawmakers in advance of the end-month bailout expiry deadline," comment Lloyds Bank analysts in a report.
In Asia on Wednesday, the Japanese Nikkei 225 closed up 0.3%. Meanwhile, the Hang Seng is up 0.1% and the Shanghai Composite is trading up 1.3%.
Wall Street ended slightly higher Tuesday. The DJIA, the S&P 500 and the Nasdaq Composite closed all up 0.1%.
US President Barack Obama's push for greater authority to negotiate trade deals moved a step closer to reality Tuesday after the measure cleared a key procedural hurdle in the Senate. The Senate voted 60-37 to limit debate on the Trade Promotion Authority measure and was expected to approve the bill in a separate vote as soon as Wednesday. TPA is considered a key element for completion of trade deals under negotiation with Pacific Rim countries and the EU.
On the UK corporate front, Anglo-South African financial services group Old Mutual on Wednesday said it has completed the acquisition of a majority stake in UAP Holdings and has begun integrating the business into its existing operations. The FTSE 100-listed company had said in January it would take a majority stake in the East and Central Africa-focused financial services company, after acquiring new shares in the company for around USD155.5 million. It now holds a 60.7% stake in the company.
Clothing retailer SuperGroup said Nick Wharton has been made its permanent chief financial officer with immediate effect, having been its interim finance chief since February. Wharton, the former chief executive of Dunelm Group and former chief financial officer at Halfords Group, was appointed to the role on an interim basis in February after his predecessor, Shaun Willis, stepped down upon being declared personally bankrupt.
Meanwhile, Jimmy Choo has disputed claims made by co-founder Tamara Mellon that the company is engaging in anti-competitive behaviour in an attempt to hurt the new business she has set up, The Times reported Wednesday. The FTSE 250-listed shoe retailer said it rejected all allegations that it was insisting that Italian leather suppliers did not work with the Tamara Mellon brand as a condition of keeping its business.
In the economic calendar, German IFO readings for June are due at 0900 BST. UK mortgage approvals information for May is scheduled to be published by the British Bankers' Association at 0930 BST. In the afternoon, US mortgage applications data are set to be released by the Mortgage Bankers Association at 1200 BST. US GDP data for the first quarter are due to be published at 1330 BST, at the same time as US personal consumption expenditure data.
By Daniel Ruiz; danielruiz@alliancenews.com
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