FTSE 100 rises ahead of UK inflation data

FTSE 100 rises ahead of UK inflation data
FTSE 100 rises ahead of UK inflation data

(Alliance News) – Stocks in London are expected to open higher on Wednesday, ahead of UK data expected to show the inflation rate has moved closer to the Bank of England’s 2% target.

IG says futures indicate the FTSE 100 is expected to open 14.1 points higher, or 0.2%, at 8,430.55 on Wednesday. London’s large-cap index closed down 7.75 points, or 0.1 percent, at 8,416.45 on Tuesday.

The pound was quoted at 1.2710 USD early Wednesday in London, down slightly from 1.2715 USD late Tuesday afternoon. The euro settled at $1.0854, down slightly from $1.0856. Against the yen, the dollar bought 156.33 yen, up from 156.10 yen.

According to the consensus cited by FXStreet, the UK’s annual consumer price inflation rate is expected to have slowed significantly to 2.1% in April, from 3.2% in March.

Commerzbank analyst Michael Pfister said the reading was expected to be much cooler due to base effects, following a robust April 2023.

Mr Pfister added: “That doesn’t say much about new inflationary pressures. And here, as we have pointed out repeatedly over the past few months, the numbers tend to suggest that core inflation is ‘will settle slightly above 3%, which is still too high. The Bloomberg consensus for the base rate also doesn’t expect today’s figure to be much lower. is ultimately the case, the BoE would have been well advised to be a little less dovish.”

UK data is released at 0700 BST.

The Federal Reserve will also be the center of attention. The minutes of its last meeting will be published at 7:00 p.m. BST on Wednesday.

In Tokyo on Wednesday, the Nikkei 225 traded down 0.9% at the end of the day. The S&P/ASX 200 in Sydney was up 0.1%. In China, the Shanghai Composite was flat, while the Hang Seng in Hong Kong was up 0.2%.

In New York, the Dow Jones index closed up 0.2%. The S&P 500 gained 0.3%, while the Nasdaq Composite climbed 0.2%.

Chipmaker Nvidia’s results will also attract attention in New York. Nvidia shares closed 0.6% higher on Tuesday, after jumping 2.5% on Monday.

“Market sentiment remains cautiously optimistic ahead of Nvidia’s results, with expectations of potential positive surprises tempered by concerns that the pattern could mirror last year’s performance, where the stock moved sideways for eight months despite “Regardless of the outcome, Nvidia’s results could trigger short-term and directional trades in both directions: up and down, as volatility is high on the stock’s implied expectations.” commented Anderson Alves, analyst at ActivTrades.

Brent oil was trading at $82.22 a barrel early Wednesday, down from $82.66 late Tuesday. Gold was quoted at $2,414.01 an ounce, down from $2,425.40.

In Wednesday’s UK business calendar there are annual results from property investor British Land, retailer Marks & Spencer and utility company Severn Trent.

By Eric Cunha, Editor-in-Chief of Alliance News

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All rights reserved.

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