London pre-open: UK stocks to snap winning streak on Greek concerns

UK stocks are expected to pull back from a three-week high on Tuesday as concerns about Greece prompt markets to snap an eight-day winning streak.

City sources have predicted that the FTSE 100 will open 33 points lower than Monday’s close of 6,633.51. This was the index’s highest close since 8 December.

Financial markets worldwide are likely to remain relatively quiet with many still away for the Christmas break.

However, Greek politics will be in focus for those returning from holidays after parliament failed to elect a president on Monday, triggering a snap general election that has been set for 25 January.

Concerns about the increasing support for anti-austerity parties caused bonds yields to soar on Monday in Greece and the wider Eurozone periphery.

10-year Greek bond yields exceeded 9.85%, rising above the 9.5% mark for the first time since September 2013. Italian and Spanish bonds were aided by European Central Bank intervention, while German bunds gained.

Stocks to watch

In the first of the post-Christmas updates from the retail sector, clothing chain Next has forecast annual profits slightly ahead of guidance and announced a new 50p special dividend, but said it remained cautious about 2015. Next said it now expected full-year profits to be within £10m either side of £775m, £5m ahead of the midpoint profit guidance it issued in October.

Gas explorer BG Group has taken a step towards starting production from three oil and gas fields off the coast of Brazil. BG said its partner Petróleo Brasileiro had submitted declarations of commerciality to the Brazilian National Agency of Petroleum, Natural Gas and Biofuels for three separate oil and gas accumulations in the Iara area. Petrobras runs block BM-S-11 in the pre-salt Santos Basin.

KAZ Minerals has negotiated new bank terms for $2.3bn of its bank debt, with interest rates cut 30 basis points and more flexibility to mitigate for exchange rate movements.