{"id":141814,"title":"FTSE 100 set for modest gains as Asian markets recover ahead of US inflation data","publisher":"Share Talk","author":"sharetalk","published":"2026-10-14T06:31:16+00:00","modified":"2026-10-14T06:31:16+00:00","canonical_url":"https://www.share-talk.com/ftse-100-set-for-modest-gains-as-asian-markets-recover-ahead-of-us-inflation-data/","markdown_url":"https://www.share-talk.com/ftse-100-set-for-modest-gains-as-asian-markets-recover-ahead-of-us-inflation-data.md","json_url":"https://www.share-talk.com/ftse-100-set-for-modest-gains-as-asian-markets-recover-ahead-of-us-inflation-data.json","category":"B2B","categories":["B2B","Blogs","Technology","Technology, Media & Telecoms"],"tags":["Aim All Share","Asia","Bangkok","Denmark","Endeavour Mining","Fed","Federal Reserve","Finland","FRANCE","FTSE 100","GERMANY","Glencore","Greenland plan","Hong kong","Japan","London","Manila","mining stocks","Mumbai","Nasdaq Composite","NATO alliance","Netherlands","Nikkei 225","Norway","S&P 500","shanghai","Singapore","Sweden","Sydney","Taiwan","UK","United States","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/10/FTSE-100-31-oct-scaled.webp?fit=1200%2C900&quality=80&ssl=1","format":"news","language":"en-GB","content":"**London stocks **are expected to open slightly higher on Wednesday, with the** FTSE 100 forecast to gain around 10 points **as Asian markets recover from a technology-led sell-off and investors await key US inflation figures.\n\nFutures indicate the **FTSE 100 will open approximately 0.1% higher at 10,659**, following Tuesday’s marginal decline of 5.95 points to 10,650.33.\n\nInvestor attention will turn to the latest US consumer price inflation figures, due at 13:30 BST, which could influence expectations for the Federal Reserve’s next interest rate decision.\n\nMarkets anticipate **monthly inflation of 0.6%, pushing the annual rate to 3.6%**, largely driven by higher energy costs. Core inflation is expected to edge up to 2.5% from 2.4%, suggesting underlying price pressures remain persistent.\n\nCommerzbank analyst Volkmar Baur warned that inflationary pressures extend beyond rising fuel prices. According to the CME FedWatch Tool, markets currently assign a 79% probability that the Federal Reserve will leave interest rates unchanged at its next meeting.\n\nAsian equities showed signs of recovery following Tuesday’s semiconductor sell-off. Japan’s Nikkei 225 gained 0.7%, Hong Kong’s Hang Seng rose 0.6%, and South Korea’s Kospi advanced 0.9% after previously plunging more than 5%.\n\nHowever, China’s Shanghai Composite slipped 0.3%, while Australia’s S&P/ASX 200 declined 0.6%.\n\nWall Street closed lower on Tuesday, with the Dow Jones falling 0.4%, the Nasdaq Composite losing 0.2%, and the S&P 500 finishing marginally down.\n\n**Technology and semiconductor stocks remain under pressure**, amid growing concerns over the profitability of artificial intelligence investment, rising financing costs and competition from Chinese technology companies.\n\nSPI Asset Management analyst Stephen Innes said investors are increasingly questioning returns on AI infrastructure spending rather than simply focusing on demand growth.\n\nEuropean chipmaking equipment giant ASML provided a further industry update, forecasting fourth-quarter net sales of between €14.2 billion and €15.2 billion, compared with analyst expectations of approximately €14.19 billion.\n\nUS banking stocks also faced selling pressure following quarterly earnings announcements. JPMorgan declined 0.9%, Wells Fargo fell 3.1%, and Citigroup dropped 5.6%.\n\nAttention now shifts to results from Bank of America and Morgan Stanley. Bank of America shares fell 2.3% in after-hours trading following a US Treasury announcement of **penalties exceeding $1.2 billion** relating to alleged anti-money laundering and sanctions violations.\n\nIn currency markets, **sterling strengthened to $1.3272 against the dollar** and €1.1838 against the euro, reaching its strongest level against the single currency since early June.\n\nBrent crude increased to **$106.29 a barrel**, compared with $105.83 on Tuesday, while gold eased to $4,156.22 an ounce from $4,163.06.\n\nUS Treasury yields edged lower, with the benchmark 10-year yield slipping to 5.20% from 5.22%.\n\nOn the London corporate calendar, investors will be watching trading updates from asset manager Ashmore and recruitment group Robert Walters.\n\n**The US inflation report is expected to be the main market catalyst**, with investors assessing whether persistent price pressures could keep American interest rates higher for longer and weigh on global equity sentiment."}