FTSE 100 Stays Flat Before US Inflation Report

FTSE Futures

London’s FTSE 100 exhibited minimal movement on Wednesday, with investors adopting a cautious stance in anticipation of forthcoming U.S. inflation data. In contrast, midcap stocks demonstrated stronger performance, highlighted by Balfour Beatty’s ascent to a record high following an upward revision of its annual forecast.

The blue-chip FTSE 100 index edged up 0.04% to 10,848.75 points by 1014. The midcap FTSE 250 climbed 0.5% to 24,916.12 points, on track to close at a record high.

  • Global equities remained stable in anticipation of U.S. inflation data, which is projected to indicate a moderate rise in consumer prices for July. This outcome could diminish financial market expectations regarding a potential interest rate hike by the Federal Reserve this year. The data is scheduled for release at 1230.
  • A surprisingly weaker-than-expected U.S. jobs report last week tempered expectations around rate hikes this year, although simmering concerns about the Middle East war have left investors in doubt.
  • Brent crude futures experienced a slight decline yet remained close to $90 a barrel, following developments involving the U.S. and Yemen’s Iran-aligned Houthis, as the outlook for a resolution to the Iran conflict seemed to weaken.
  • Investors are anticipating the release of the UK’s GDP data on Thursday, which is projected to indicate that economic growth has stagnated on a month-over-month basis in June, following a 0.1% increase in May.
  • Britain’s new Prime Minister Andy Burnham stated in an interview with the BBC that his government will take measures to assist in reducing costs for businesses, although he recognised a challenging financial outlook.
  • Market participants are presently assigning a probability of 46% to the likelihood of a 25-basis-point increase in interest rates by the Bank of England in December.
  • Helping lift midcap stocks, Balfour Beatty opened a new tab and jumped 9.2% after the British construction group raised its annual operating profit forecast, citing strong demand for infrastructure projects in the United States and UK.
  • Mining giants Anglo American and Rio Tinto gained more than 1% each as copper prices edged up following a temporary shutdown at a major Indonesian smelter, which contributed to the pressure on the global supply of the red metal.