MARKET COMMENT: London Seen Slightly Lower After FTSE 100 Record

LONDON (Alliance News) - London markets set to open slightly lower Wednesday, as investors digest the intraday record high reached on Tuesday by the FTSE 100 after an agreement to extend Greece's bailout and as Federal Reserve Chair Janet Yellen painted a rosy picture of the US economy but said policy makers would be patient before raising interest rates.

IG futures indicate the FTSE 100 to open 5 points lower at 6,944.0. The index closed Tuesday up 0.5% at 6,949.63, having reached a new record intraday high of 6,958.89 in late session.

Wall Street ended higher Tuesday. The DJIA closed up 0.5%, the S&P 500 ended up 0.3% and the Nasdaq Composite was up 0.1%.

In Asia on Wednesday, the Japanese Nikkei 225 closed down 0.1%, and the Hang Seng trades up 0.1%. The Shanghai Composite, which opened again after the Chinese New Year holidays, is trading down 0.6%.

China's manufacturing sector rebounded unexpectedly in February as the PMI rose to its highest level in four months, flash figures from Markit Economics showed Wednesday. The HSBC flash manufacturing purchasing managers' index, or PMI, rose to a four-month high of 50.1 in February from 49.7 in January. Economists expected the index to come in at 49.5.

Brent crude is quoted at around USD58.85 a barrel Wednesday, and US benchmark West Texas Intermediate is quoted at USD49.24 a barrel. Gold is quoted early Wednesday at USD1,211.44 an ounce.

In the corporate calendar Wednesday, Weir Group, St James's Place, Brit, Hays, Henderson Group, International Personal Finance, Molins, Petrofac, Vitec Group, Man Group, Segro and TSB Banking Group release full year results. Wilmington and Barrat Developments issue half year results, while Whitbread publishes a fourth quarter trading update. JP Morgan Indian Investment Trust provides an Interim Management Statement.

In the economic calendar Wednesday, UK BBA mortgage approvals data is due at 0930 GMT. In the US, new home sales data is due is at 1500 GMT, while EIA crude oil stocks change is at 1530 GMT.

By Daniel Ruiz; danielruiz@alliancenews.com

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