London pre-open: Flat start expected with Greece, Yellen in focus

UK stock markets were expected to open more or less flat on Tuesday morning as investors awaited details on a bailout extension request from Greece and comments from Federal Reserve chair Janet Yellen.

City sources predict the FTSE 100 will open just a few points higher than Monday’s close of 6,912.16.

Eurozone leaders will receive Greece's list of reforms aimed at securing a bailout extension on Tuesday morning, after Athens missed Monday's deadline. The list is thought to include plans to fight tax evasion and limit the civil service.

“If the list proves insufficient, ministers will likely be called for a meeting in Brussels in an attempt to iron out the differences,” explained analysts at Danske Bank.

Yellen will also be in focus on Tuesday as she gives her semi-annual testimony to the Senate Banking Committee. Analysts are expecting a hawkish stance from the Fed chair as markets await hints about when the central bank will begin to raise interest rates.

Stocks to watch

BHP Billiton has pledged to keep its dividend policy unchanged despite the proposed demerger of its non-core operations, as it beat forecasts with a less-than-expected decline in profits in the first half. The world’s largest mining group said underlying earnings before interest, tax, depreciation and amortisation fell 12.3% year-on-year to $14.49bn in the six months to 31 December. Analysts were looking for a figure closer to $13.62bn.

After delivering an outstanding set of results, in line with expectations, housebuilder Persimmon announced it was further accelerating its return of cash to shareholders. Boosted by a solid start to 2015, with the private sales rate per site 5% stronger than the prior year for the first eight weeks, management said a special dividend payment of 95p per share currently planned for 6 July will be paid on 2 April.

Paper and packaging group Mondi revealed that its full-year profit before tax rose 24% to €619m in 2014 on revenues that declined 1% to €6.4bn. The full-year dividend was lifted 17% to 42 cents per share.