London stocks were set to open slightly lower on Wednesday following a sharp sell-off on Wall Street, with investor attention firmly on UK inflation data due later in the morning.
Futures pointed to the FTSE 100 opening 11.1 points, or 0.1pc, lower at 10,115.68. The index closed down 0.7pc, or 68.57 points, at 10,126.78 on Tuesday.
Sterling edged lower to $1.3439 on Wednesday morning from $1.3462 at Tuesday’s London close. The euro slipped to $1.1724 from $1.1733, while the dollar firmed against the yen to ¥158.15 from ¥157.95.
Political tensions remained in focus after Donald Trump departed for the World Economic Forum in Davos, having switched aircraft after his original plane returned to base due to a minor electrical issue, according to the White House. Asked ahead of his trip how far he would go in pursuing control of Greenland, the autonomous Danish territory, Trump replied: “You’ll find out.”
He later told reporters that meetings on Greenland were scheduled in Davos and said he believed “things are going to work out pretty well.” European leaders pushed back strongly, however, warning of firm retaliation against Washington’s threats.
Ursula von der Leyen, president of the European Commission, warned that US tariff plans risked sending EU-US relations into a “downward spiral”, branding the measures a “mistake”. She said Europe’s response would be “unflinching, united and proportional”.
US equities ended sharply lower on Tuesday, with the Dow Jones Industrial Average down 1.8pc, the S&P 500 off 2.1pc and the Nasdaq Composite falling 2.4pc.
Asian markets were mixed overnight. Japan’s Nikkei 225 slipped 0.5pc, China’s Shanghai Composite was marginally lower, while Hong Kong’s Hang Seng Index edged higher. Australia’s S&P/ASX 200 fell 0.4pc.
Gold rose to $4,864 an ounce early on Wednesday from $4,742.56 late on Tuesday, having touched a fresh record high of $4,888.43. Brent crude slipped to $64.22 a barrel from $64.89.
