LONDON, Jan 24 (Reuters) - Britain’s FTSE 100 index is seen opening down 13 to 20 points, or as much as 0.3 percent lower, on Tuesday, according to financial bookmakers, retreating from Monday’s six-month closing high after Greece’s debt swap negotiations suffered a blow, raising the prospect of a default.
Euro zone finance ministers on Monday rejected an offer made by private bondholders to help restructure Greece’s debts, sending negotiators back to the drawing board.
The disagreement increases the risk that it will prove impossible to strike a voluntary restructuring deal between Greece and its creditors - an outcome that would have severe repercussions for financial markets and Europe’s economic growth prospects.
The UK benchmark index ended up 54.01 points at 5,782.56 on Monday, its highest close since July 29.
U.S. stocks finished almost flat as investors took a break from a recent rally, awaiting earnings from bellwethers such as Apple later in the week, as well as the Fed’s Federal Open Market Committee decision on interest rates, with many wondering whether the recent string of upbeat economic data may stop the central bank from introducing new stimulus measures.
Britain, by contrast, will probably need more quantitative easing, Bank of England policymaker Adam Posen said on Monday. Economic outlook has improved slightly since the central bank launched a second round of QE in October, but Posen cautioned “that’s not enough...to suggest we have solved the problem.”
On the domestic data front, the latest borrowing figures for the British government will be released at 0930 GMT, with December’s PSNB expected at 12.20 billion pounds, down from 15.23 billion pounds the month before. Excluding financial intervention, December’s PSNB is forecast at 14.90 billion pounds, down from 18.09 billion pounds in November.
There is no major economic data due to be released in the United States on Tuesday.
* GLOBAL MARKETS-Euro shaky as Greek debt talks stall
* Wall St rests after rally; bellwether earnings ahead
* Nikkei near 3-mth high on Greece hopes; Elpida jumps
* Gold steady near 6-week high, focus on Fed meeting
* Copper slips after rally, firmer dollar weighs
* Brent steady above $110 on Iran ban; Greece woes weigh
* Euro gains evaporate after Greek setback
UK stocks to watch on Tuesday are:
The UK phone retailer issues a trading update.
Premier Foods completed the disposal of its four Irish brands to the Boyne
Valley Group for 41.4 million euros on a debt- and cash-free basis, the
British food supplier said towards the close of trade on Monday.
The real estate investment trust issues a trading update.
The property company holds its annual general meeting.
The investment trust holds a shareholder meeting.
The military equipment maker publishes its preliminary results.
The laboratory evaluations company holds its annual general meeting.
The South African miner issues a trading update.
The British soap maker reports first-half results.
The electrical products maker publishes fourth-quarter results.
The shipping company reports fourth-quarter earnings per share of $0.07 and
declares a quarterly dividend of $0.03 per share.
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