The FTSE 100 is expected to open lower on Wednesday as investors await key US inflation figures and oil prices continue to rise amid tensions surrounding the Strait of Hormuz.
Futures indicate London’s blue-chip index will open around 28 points, or 0.3%, lower at 10,817.29, after closing 0.2% down at 10,844.19 on Tuesday.
US consumer price inflation is expected to slow to 3.4% in July from 3.5% in June, with the figures due at 13:30 BST. A softer reading could reduce expectations for further Federal Reserve tightening, while a stronger print could renew pressure on equities and bond markets.
Brent crude rose to $89.32 a barrel, from $88.22 late Tuesday, as uncertainty over the Strait of Hormuz continued.
US President Donald Trump said Washington had “total control” of the strategic shipping route and reiterated his distrust of Iran, keeping geopolitical risk firmly in focus.
Gold strengthened to $4,391 an ounce, while sterling was little changed at around $1.3504.
Wall Street ended lower overnight, with the Dow and S&P 500 down 0.3% and the Nasdaq falling 0.6%.
In Asia, Japan’s Nikkei 225 gained 0.9%, China’s Shanghai Composite edged 0.1% higher, while Hong Kong’s Hang Seng fell 1.1%.
In London, investors will also watch half-year results from Balfour Beatty and Evoke.
