By Jon Hopkins
LONDON, Feb 21 Britain's FTSE 100 index is seen
opening up 5-7 points, or 0.1 percent, on Tuesday, according to financial
bookmakers, slightly extending Monday's advance after euro zone policymakers
finally agreed a second bailout for Greece.
The deal is largely priced in to equity markets after recent rallies and,
amid some underlying concerns that it is only a short-term fix for
heavily-indebted Greece, overall sentiment is likely to be subdued.
"While the package may buy more time it remains highly debateable whether it
will achieve the measures it is designed to, given the magnitude of the problems
in the country," said Michael Hewson, Senior Market Analyst at CMC Markets UK.
Euro zone finance ministers approved a 130 billion-euro rescue for Greece,
with strict conditions, that averts a default next month by Athens and enables
the country to launch a bond swap with private investors to help reduce and
restructure its vast debts.
Sceptics, however, question whether a new Greek government will stick to a
deeply unpopular austerity programme after an election due in April, and believe
Athens could again fall behind in implementation, prompting exasperated lenders
to pull the plug once the euro zone has stronger financial firewalls in place.
The UK blue chip index closed up 40.18 points, or 0.7 percent, on Monday at
5,945.25, driven by strength in mining stocks after a surprise easing in China's
monetary policy, which boosted the prospect of revived demand from the world's
most voracious consumer of raw materials.
Miners are expected to lead the gains in London on Tuesday as copper prices
added another 1.4 percent in Asia trade on expectations of more lending
for infrastructure projects in China.
U.S. markets were closed on Monday for the Presidents Day holiday, so
investors only have a limited lead from Asian markets on Tuesday, with MSCI's
broadest index of Asia Pacific shares outside Japan up just 0.1
percent, while Tokyo's Nikkei share average fell 0.2 percent.
On the domestic macro front, January's British public sector finance data
will be released at 0930 GMT, with January's PSNCR seen at -21 billion pounds.
In the United States, January's Chicago Fed index will be released at 1330
* Euro jumps, but Greek deal fails to ignite stocks
* Nikkei steady after rally, shippers outperform
* FOREX-Euro gains after Greece bailout deal
* Brent hovers near $120, Iran supply cuts support
* Copper rises with euro on Greece relief
* Gold edges up after EU approves Greece bailout
* U.S. bonds slip after Greece deal, ahead of auctions
UK stocks to watch on Tuesday are:
LLOYDS BANKING GROUP
Antonio Horta-Osorio, Lloyds' chief executive, has come under pressure to
hand back part of his signing-on award, The Daily Telegraph said.
HSBC, bucking the trend among some European banks, is increasing its
exposure to trade finance by making 4 billion pounds of credit available to
small and medium-sized enterprises that trade, or are planning to trade,
The oil services group unveils full-year results.
The real estate group reports full-year results.
The power station operator posts full-year results.
The specialty chemicals firm reveals full-year results.
GULF KEYSTONE PETROLEUM
The Kurdistan-focused oil company rose 3.5 percent to an all-time high as
speculation mounted that either Exxon Mobil or Total would
soon launch a knock-out cash offer for the company, the Daily Mail's market
The Kazakhstan-focused oil explorer jumped almost 30 percent on rumours of a
possible 354 million pound, or 35 pence a share cash bid from the bigger
Zhaikmunai, which is based in north-western Kazakhstan, according to the Daily
Mail's market report.
The veterinary drugs group reports first-half results.
The sausage skin maker unveils full-year results.
The animal genetics firm posts first-half results.
The publisher posts full-year results.
ALBEMARLE & BOND HLDG
The pawnbroker reports first-half results.
MORGAN SINDALL GROUP
The construction and regeneration firm reveals full-year results.
PRIMARY HEALTH PROPERTIES
The healthcare property specialist posts first-half results.
The wealth manager unveils full-year results.
RSM TENON GROUP
The business services provider posts first-half results.
The self storage group issues a first-quarter trading update.
The touch sensors manufacturer holds its annual general meeting.
TODAY'S UK PAPERS
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