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LONDON MARKET EARLY CALL: FTSE 100 seen down before UK inflation data

22nd Oct 2025 06:55

(Alliance News) - Stocks in London are set to open slightly lower on Wednesday, ahead of a trio of UK inflation readings.

IG says futures indicate the FTSE 100 to open marginally lower 2.4 points on Wednesday. The index of London large-caps closed up 0.3% at 9,426.99 on Wednesday.

Sterling was quoted at USD1.3384 early Wednesday, lower than USD1.3390 at the London equities close on Tuesday.

UK inflation is expected to have risen to its highest level in nearly two years, adding pressure on both the Treasury and the Bank of England.

According to consensus cited by FXStreet, the consumer price index is forecast to have increased to 4.0% on-year in September, the highest since January 2024, up from 3.8% in July and August.

The data, due at 0700 BST, will also include producer and retail price figures.

Gold prices rebounded slightly after sharp losses on Tuesday, when they fell nearly USD400 per ounce from record highs near USD4,380. Gold was quoted at USD4,143.60 an ounce early Wednesday, higher than USD4,131.30 on Tuesday.

"Beyond profit-taking after an extended rally, this sharp correction reflects a weakening in safe-haven demand - a signal that global risk appetite is improving," said Linh Tran, market analyst at XS.com.

"As investors scale back exposure to safe assets, capital tends to rotate back into riskier instruments such as equities, indirectly supporting the uptrend in the S&P 500," which is currently trading around 6,750 points, near its all-time high.

The euro traded at USD1.1614 early Wednesday, higher than USD1.1612 late Tuesday. Against the yen, the dollar was quoted at JPY151.74 versus JP151.75.

US President Donald Trump said he has shelved plans for a summit in Budapest with Russian President Vladimir Putin, saying he did not want a “wasted” meeting.

His reversal came days after announcing the two would meet in Budapest within a fortnight to discuss the war in Ukraine. "I don't want to have a waste of time, so I'll see what happens," Trump told reporters in Washington.

In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.5%, the S&P 500 marginally higher, and the Nasdaq Composite down 0.2%.

Netflix shares fell 6.5% in after-hours trading after the company posted lower-than-expected earnings, citing an ongoing dispute with Brazilian tax authorities.

Net income rose 8.1% to USD2.55 billion in the three months to September 30 from USD2.36 billion a year earlier, as revenue climbed 17% to USD11.51 billion. Diluted earnings per share increased to USD5.87 from USD5.40.

"This was below our guidance forecast because we incurred an expense in [the third quarter] of approximately USD619 million related to an ongoing dispute with Brazilian tax authorities regarding certain non-income tax assessments," Netflix explained.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.3%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong was down 0.9%. The S&P/ASX 200 in Sydney closed down 0.7%.

Japan’s trade deficit narrowed in September as exports outpaced imports, provisional data from the Ministry of Finance showed. The deficit stood at JPY234.6 billion, or about USD1.55 billion, down from JPY306.1 billion a year earlier. Exports to the US fell 13%.

Brent oil was trading at USD62.31 a barrel early Wednesday, higher than USD61.26 late Tuesday.

In Wednesday's corporate calendar, Barclays releases third-quarter results, while full-year results are due from Softcat and SRT Marine Systems.

Reckitt Benckiser, Fresnillo, Halfords, Hochschild Mining, International Personal Finance, Quilter, System1 and Aberdeen Group all issue trading statements.

PensionBee Group also reports third-quarter results, and BlackRock Smaller Companies Trust posts half-year results.

In the economic calendar, UK consumer prices index, producer prices index, and retail prices index figures are released at 0700 BST, followed later by Irish wholesale prices and US EIA crude oil stock data.

By Eva Castanedo, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.

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