16th Jul 2025 06:54
(Alliance News) - London's FTSE 100 is called to open flat on Wednesday, ahead of a UK consumer price inflation reading, and before the latest batch of US banking earnings roll in.
IG says futures indicate the FTSE 100 to open 3.0 points lower, largely flat, at 8.935.32 on Wednesday. The index of London large-caps closed down 59.74 points, 0.7%, at 8,938.32. It hit a new all-time peak of 9,016.98, crossing the 9,000 threshold for the first time.
In New York on Tuesday, the Dow Jones Industrial Average fell 1.0%, the S&P 500 lost 0.4%, but the Nasdaq Composite added 0.2%, helped by a 4.0% rise in Nvidia shares.
The yield on the US 10-year Treasury was quoted at 4.47%, stretching from 4.43% at the time of the London equities close on Tuesday. The yield on the US 30-year Treasury was quoted at 5.00%, narrowing from 5.02%.
In Tokyo on Wednesday, the Nikkei 225 was up 1.0% in late trade. In China, the Shanghai Composite was down 0.4%, while the Hang Seng Index in Hong Kong was 0.2% lower. The S&P/ASX 200 in Sydney was down 0.7%.
Wednesday's global economic calendar sees UK inflation figures at 0700 BST, US PPI at 1330 and industrial production data and publication of the Federal Reserve's Beige Book at 1900.
The pound bought USD1.3393 early Wednesday, up from USD1.3380 at the time of the London equities close on Tuesday. The euro rose to USD1.1617 from USD1.1604. Against the yen, the dollar fell to JPY148.86 from JPY148.97.
According to FXStreet cited consensus, the pace of UK annual consumer price inflation is expected to have been unmoved at 3.4% in June, where it stood in May.
Pepperstone analyst Michael Brown commented: "The closely-watched services CPI metric is seen slipping 0.2pp to 4.5% YoY. Figures of this ilk, or better, will cement the case for a 25bp BoE cut at the August meeting, with the accompanying guidance, and pace of further reductions, hinging largely on how rapidly the labour market continues to weaken. The next UK jobs report is due tomorrow."
Bank of England Governor Andrew Bailey has said that "urgent" reforms of retail banking payments should be a priority as he remains to be "convinced" over the need for a digital pound.
In his annual Mansion House dinner speech, Bailey said the UK needs to "harness the potential of digital technology for retail payments" both within Britain and internationally to help future-proof payments infrastructure and ensure it can play its part in boosting growth in the UK.
But he added a dose of scepticism over any plans for a digital pound and reiterated concerns over so-called stablecoins – a type of cryptocurrency which is backed by a traditional asset such as a currency or commodity.
UK Chancellor Rachel Reeves told City bosses on Tuesday that Britain cannot meet its growth ambitions without a "fighting fit and thriving" finance sector, as she urged regulators to resist "excessive caution".
Reeves, delivering her annual Mansion House speech to the financial services sector, said changes were needed for the UK to stay competitive in a more uncertain global economy.
"Today, I have placed financial services at the heart of the government's growth mission, recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving," she told the attendees.
The Treasury announced a package of reforms on Tuesday aimed at attracting more investment to the UK, and among individual consumers, to help grow the economy.
Reeves said this involves "rolling back regulation that has gone too far in seeking to eliminate risk", with plans to cut red tape in the City and reform banking rules including the ring-fencing regime.
Wednesday's UK corporate calendar has trading statements from miner Antofagasta and precision engineering group Hunting.
Already out, miner Rio Tinto hailed an "excellent operational performance" in the second quarter.
Pilbara iron ore production climbed 5% on-year to the highest second quarter output at the asset since 2018. Shipments from Pilbara were 1% lower, however.
Elsewhere, copper output rose 15% annually, aluminium production was 2% higher and bauxite production climbed 6%. It was a "second consecutive quarterly production record" in bauxite.
"We delivered excellent operational performance from our mine operations with record production from our bauxite business and from Oyu Tolgoi as it ramps up to become the world's fourth largest copper mine before the end of the decade," Chief Executive Officer Jakob Stausholm said.
Rio Tinto left its output guidance for the full year largely unchanged, though it said it now expects bauxite output at the higher end of a forecast range.
Shares in the company were up 0.3% in Sydney.
A barrel of Brent traded at USD68.92 early Wednesday, largely flat from USD68.94 at the time of the London equities close on Tuesday. Gold rose to USD3,336.61 an ounce from USD3,331.36.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Rio Tinto