London pre-open: FTSE 100 to test record highs on Greek bailout extension

23rd Feb 2015 06:49

UK stocks are expected to test record highs on Monday as markets breath a sigh of relief after Greece was granted an extension on its bailout agreement with the Eurozone.City sources predict the FTSE 100 will open around 30 points higher than Friday's close of 6,915.20.The index is set to surpass its all-time closing high of 6,930.20 reached in late December 1999. The intraday record if 6,950.60.The Eurozone approved a four-month extension on Greece's bailout on Friday, two months shorter than requested, subject to Athens submitting details on the reform and budgetary measures it plans to take by Monday.Greek Prime Minister Alexis Tsipras delivered a triumphant speech following the bailout extension, but warned his country faces "a long and difficult road" ahead. Although Tsipras said his government had "achieved much" by agreeing the deal, it was a move he had previously promised never to make and is viewed by many as the party backing down from its original position.Monday's session is set to be relatively quiet in terms of economic data, with the German IFO business climate index and US existing-home sales being the only major releases of the day.However, analysts at Danske Bank said the focus will remain on Greece today. They said: "The monitoring institutions need to approve the policy programme submitted by the Greek government for the agreement reached on Friday to be effective. We expect it to be approved but probably not until after market close in Europe."Stocks to watchPrimark owner and food ingredients group Associated British Foods reiterated its guidance for a small fall in full-year profits this year, saying that underlying trading has been in line with expectations. However, for the first half ending 28 February 2014, adjusted earnings per share should be in line with the prior year on the back of a lower tax rate.Bunzl published its full-year results for 2014, revealing a 4% increase in adjusted pre-tax profit to £387.8m and a 10% hike in the dividend. The company also unveiled its latest two acquisitions, Quirked in Spain and Jan-Mar Sales in Canada.