NEW YORK: UK stocks opened slightly lower on Friday morning head of a crucial weekend for Greece, as the government holds a referendum on European bailout proposals.
With Friday’s economic data calendar looking sparse, investor sentiment was likely to be driven by developments in Athens, as the latest polls suggest that the result of Sunday’s vote is too close to call.
The FTSE 100 was trading 0.22% down at 6,615.71 early on, with RBS and a host of mining stocks providing a drag.
The Greek government has confirmed that a referendum will go ahead as planned on Sunday, while creditors have refused to discuss a bailout deal until after the public vote.
“Yet there is still a chance that the referendum might not go ahead, with the Greek Council of State to vote whether it breaches the country’s constitution. Whilst the body is likely to give it the all clear, it adds another shade of uncertainty to a situation defined by its instability,” said Spreadex analyst Connor Campbell.
According to the head of the Hellenic Chambers of Commerce, Constantine Michalos, cash reserves at Greek banks were down to just €500m. Although banks were expected to reopen next week, Michalos said: “Anybody who thinks they are going to open again on Tuesday is day-dreaming. The cash would not last an hour.”
http://www.digitallook.com/news/market-report-opening/london-open-uk-stocks-slip-ahead-of-greek-referendum-rbs–786325.html
