London pre-open: Small gains expected as FTSE extends record

LONDON (ShareCast) - UK stocks are set to extend a record high on Monday morning following positive newsflow from Greece and continued bullishness following the Federal Reserve meeting. City sources predict the FTSE 100 will open 13 points higher than Friday's close of 7,022.51.

US markets finished strongly on Friday, with the Nasdaq rising to a 15-year high, as investors continued to digest comments from Fed chair Janet Yellen who said rates could rise more slowly than previously anticipated.

Meanwhile, authorities in Greece are said to be rushing to complete the latest submission of their reform plan amid reports the country is struggling to meet its day-to-day financing commitments. According to the Sunday Times, senior sources in Athens have revealed that the reform plan will be submitted by Wednesday and that Greek powers are looking for a decision from European finance ministers by Friday.

Germany's Angela Merkel and Greece's Alexis Tspiras are due to meet in Berlin later on Monday afternoon.

Analyst James Hughes from Etoro said traders across Europe are unsure of the next directional move on the markets, with both the Germany Dax and UK Footsie at all-time highs, and a correction (especially in Frankfurt) "could be just around the corner".

"If anything is likely to burst the European equity market bubble it would definitely be a negative outcome in Greece, as yet again the Greeks hold the power of financial market stability in their hands," he said.

Stocks to watch Dairy Crest (LSE: DCG.L - news) 's proposed sale of its dairies operations to Müller, first announced in November 2014, has been referred to the Competition and Markets Authority (CMA).

Egyptian gold miner Centamin (Toronto: CEE.TO - news) said profits more than halved to $81.56m in 2014 as higher production was offset by increased output costs and lower commodity prices.

Firstgroup (LSE: FGP.L - news) has made a deal with the Department for Transport to operate the First Great Western rail franchise until 1 April, 2019. The deal could be extended an extra year if the department sees fit and will involve the largest fleet upgrade seen on that route in a generation.