FTSE 100 futures indicated an opening around 60.5 points, or 0.6%, higher at 10,697.21 on Wednesday, after London’s blue-chip index fell 0.5% to 10,636.71 on Tuesday.
UK economic growth was revised higher shortly before the open, with GDP expanding 0.5% in the second quarter, compared with the previous estimate of 0.4%.
Sterling strengthened to around $1.3237, up from $1.3210 at Tuesday’s London close.
Asian equities provided a supportive backdrop, with Japan’s Nikkei 225 up around 2% and Australian shares advancing, while Chinese markets were also firmer. Recent policy announcements from Beijing have included additional monetary and credit support as authorities seek to strengthen economic growth.
Wall Street ended modestly lower on Tuesday as high borrowing costs continued to pressure equities. The Dow fell 0.3%, the S&P 500 lost 0.2% and the Nasdaq slipped 0.1%.
The US 10-year Treasury yield eased to around 5.22%, after reaching levels not seen since 2007, providing some relief to equity valuations ahead of another heavy session of economic data.
Brent crude was trading around $103 a barrel early Wednesday, down from Tuesday’s higher levels but remaining elevated by the conflict with Iran.
The softer oil price could limit support for heavyweight producers BP and Shell, while gold strengthened to around $4,177 an ounce.
Attention now turns to the US, where GDP, ADP private payrolls and the PCE inflation measure are due later on Wednesday.
The combination will be important for Federal Reserve expectations. Strong growth and employment alongside persistent inflation would reinforce the case for higher interest rates, while weaker activity or softer inflation could take some pressure off Treasury yields.
For London investors, the immediate backdrop is therefore more supportive after Tuesday’s sell-off, but US yields remain the dominant market risk. A sustained fall in borrowing costs could extend the rebound, while another strong US inflation reading would quickly put pressure back on equities.
