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UK Index flat as $90bn Glencore deal agreed

The UK 100 was flat as further delays to Greek debt restructuring created more confidence sapping uncertainty – but the talk of the market was the agreed $90bn (£56bn) merger of Glencore and Xstrata.

After rejecting a newly proposed bailout deal which demands stricter labour reforms and other austerity steps, Greek leaders will meet again today in a last ditch effort to avoid defaulting.

The full package must be approved by the Eurozone, the European Central Bank and the International Monetary Fund before 15 February in order to complete all the legal procedures for a bond swap deal and save the country from the economic abyss.

European shares fell this morning despite being on six-month highs. They were mainly weighed down by weak updates from the likes of UBS. The Swiss bank fell 1.1% as it posted a quarterly profit at the bottom end of expectations amid uncertainty around the Eurozone.

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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