LONDON (Alliance News) - UK stocks are set to open higher Monday, ahead of a week in which the market is expected to focus on UK and US economic data and as Greek Prime Minister Alexis Tsipras visits Berlin on Monday to meet German Chancellor Angela Merkel for the first time.
IG futures indicate the FTSE 100 to open 13 points higher at 7,035.0. After setting a new record intraday high of 7,024.21, the FTSE 100 closed up 0.9% at 7,022.51 on Friday, its fifth successive day of gains, led higher by its heavily weighted resource sector amid a wider equity rally in Europe and the US.
"Given the gyrations in currency markets caused by the more dovish stance of the Federal Reserve; the numerous US economic reports will be of particular import this week. Since deflationary risks were highlighted by the FOMC in its pared back forecasts, US consumer price inflation data on Tuesday will be closely watched," says CMC Markets analyst Jasper Lawler.
"It should prove to be another decisive week for Greece as Greek Prime Minister Tsipras is set to meet German Chancellor Merkel. Athens is hoping to improve relations with its biggest EU creditor before announcing a more detailed set of reforms required to unlock the next instalment of aid," Lawler writes.
Greek Foreign Minister Nikos Kotzias told the broadcaster Deutsche Welle that there are a long-term friendship and common interests between Greece and Germany. Kotzias was in Berlin to meet his German counterpart, Frank-Walter Steinmeier. "The most important thing is that we try together to better understand one another, that we dismantle the stereotypes that exist on both sides," he said.
The Greek government said Friday there will be no austerity measures in the reform proposals the Mediterranean country has promised to submit to European leaders in order to receive new bailout aid.
"The list of reforms will have no recessionary measures. There will be no additional austerity included," spokesman Gaviil Sakellarides said Friday of the proposals the government has promised to deliver in the coming days.
Athens and its European partners have had trouble seeing eye to eye since Tsipras' leftist SYRIZA government assumed office in January on a promise to end the austerity associated with 240 billion euros in rescue loans that Greece has received since 2010.
In Brussels meanwhile, European Commission President Jean-Claude Juncker said Friday the EU could offer Athens EUR2 billion in "unused funds" from the bloc's 2015 budget, to help the country tackle its humanitarian crisis.
Wall Street ended higher Friday. The DJIA closed up 0.9%, the S&P 500 ended up 0.9% and the Nasdaq Composite closed up 0.7%.
The euro is slightly down in the day against the dollar Monday, though the dollar rally has paused. The euro trades at USD1.0790, up from the lows of USD1.0461 the eurozone currency saw two weeks ago. The pound is also slightly down on the day against the dollar, trading at USD1.4898.
US cable group Liberty Global wants to distribute ITV?s best programmes across Europe, but sees the British broadcaster as too ?pricey? to acquire outright, its chief financial officer has suggested in an interview with the Financial Times.
?ITV looks awfully pricey,? CFO Charlie Bracken told the newspaper. ?We?re not going to invest billions of dollars in content ? that?s not our game.?
In Asia on Monday, the Japanese Nikkei 225 closed up 1.0%, and the Hang Seng trades up 0.4%. The Shanghai Composite is trading up 2.0%.
Brent crude is quoted at around USD54.48 a barrel Monday, and US benchmark West Texas Intermediate is quoted at USD45.69 a barrel. Gold is quoted early Monday at USD1,182.74 an ounce.
In the economic calendar Monday there are US existing home sales for February at 1400 GMT and eurozone consumer confidence is at 1500 GMT.
Changes from the latest FTSE quarterly index review are implemented on Monday. Joining the FTSE 100 is Hikma Pharmaceuticals, replacing Tullow Oil.
By Daniel Ruiz; danielruiz@alliancenews.com
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Tullow Oil (TLW)
Hikma Pharmaceuticals (HIK)
ITV (ITV)