London pre-open: Higher open expected ahead of UK budget
Updated : 07:50
UK stocks are expected to open higher on Wednesday after dropping to their lowest level in six months as investors await further news on Greece and the chancellor’s budget statement.
City sources predict the FTSE 100 will open 46 points higher than Tuesday's close of 6,432.21, the lowest close 16 January.
Eurozone leaders on Tuesday night warned Greece that a new bailout deal should be struck within the next five days or the country would face a banking collapse as well as a potential exit from the Eurozone.
European Commission President Jean-Claude Juncker also warned that although he was “strongly” against Grexit, there was a “Grexit scenario prepared in detai”. He said: “We have a scenario as far as humanitarian aid is concerned.”
Meanwhile, chancellor George Osborne is expected to unveil £12bn in welfare cuts and changes to taxation in a “emergency” budget statement to the House of Commons, scheduled to start at 1100 BST.
Measures to improve housebuilding could see construction stocks move, while investors of listed banks will be watching out for any potential movement on the controversial bank levy imposed in wake of the global financial crisis. Retail stocks could also be boosted by a move to allow shops in England and Wales to be open for longer on Sundays by handing the responsibility to local towns and cities.
Stocks to watch
Barclays announced the departure of chief executive Antony Jenkins, saying that “a change in leadership is required” and the search for his successor was underway. Chairman John McFarlane will become executive chairman pending the appointment of a new CEO.
Sales at grocery wholesaler Booker have been underwhelming in the first quarter, with just 0.2% revenue growth for the first 12 weeks of the financial year, compared to 1% in the preceding quarter. But chief executive Charles Wilson maintained it was a "solid" performance and said that the group remained on course to meet expectations for the year ending 25 March 2016.