London’s blue-chip shares are expected to extend gains on Wednesday as investors digest a softer UK inflation reading.
FTSE 100 futures point to the index opening around 30 points higher, building on Tuesday’s positive close. The FTSE 100 ended the previous session up 61.15 points at 10,585.91.
Sterling was searching for direction following the inflation data, as markets assessed what the figures could mean for interest rate expectations and the broader UK economic outlook.
Prime Minister Andy Burnham announced that single bus fares across England will be capped at £2 from January.
Oil prices remained elevated as the US continued strikes against Iran, with President Donald Trump warning he was “not finished” with the conflict. Brent crude traded at US$91.88 a barrel early Wednesday, up from US$91.36 late Tuesday.
Trade tensions also remained in focus after a new 25% US tariff on Brazil took effect.
Trump also announced plans to impose steep tariffs on imported generic drugs from August 2028, following a two-year zero-tariff period.
Wall Street closed higher on Tuesday, with the Dow Jones up 0.7%, the S&P 500 rising 0.9% and the Nasdaq Composite gaining 1.3%.
Investors are now looking ahead to half-year earnings from Alphabet and Tesla, which could set the tone for technology stocks.
Asian markets were mixed, with Japan’s Nikkei up 0.1%, China’s Shanghai Composite also 0.1% higher, Hong Kong’s Hang Seng down 1.2% and Australia’s S&P/ASX 200 up 0.2%.
Gold rose to US$4,131.80 an ounce from US$4,077.93 on Tuesday.
