14th Jan 2026 06:52
(Alliance News) - Stocks in London are set to open slightly higher on Wednesday, as markets move past recent jitters over Fed independence and look ahead to fresh US economic data.
IG says futures indicate the FTSE 100 to open 9.4 points higher, 0.1% at 10,146.75 on Wednesday. The index of London large-caps closed marginally lower at 10,137.35 on Tuesday.
Markets on Tuesday looked through concerns around Federal Reserve independence, while also shrugging off the December US consumer price inflation report and mixed earnings from JPMorgan.
Attention now turns to the latest US retail sales and producer price inflation figures due later on Wednesday.
Ahmad Assiri, research strategist at Pepperstone, said: "December's US CPI print delivered a largely uneventful inflation message on the surface, but the broader market response suggests investors are looking well beyond the headline numbers."
Sterling was quoted at USD1.3436 early Wednesday, higher than USD1.3428 at the London equities close on Tuesday. The euro traded at USD1.1646 early Wednesday, slightly higher than USD1.1638 late Tuesday. Against the yen, the dollar was quoted at JPY159.33, up versus JPY159.17.
In New York on Tuesday, Wall Street ended lower. The Dow Jones Industrial Average fell 0.8%, the S&P 500 declined 0.2%, and the Nasdaq Composite slipped 0.1%.
US Treasury data showed that higher revenues from taxes and tariffs helped narrow the US budget deficit in the October-to-December period compared with a year earlier.
The deficit shrank by 15% year-on-year to USD602 billion from USD711 billion. Total revenue climbed 13% to USD1.2 trillion, while overall spending rose 2% to USD1.8 trillion.
Among revenue categories, taxes collected from individuals rose notably, while customs duties surged to USD94 billion in the first three months of the current fiscal year from USD23 billion a year earlier.
Nvidia and Advanced Micro Devices are among the beneficiaries of new US rules announced Tuesday that allow the export of advanced artificial intelligence chips to Chinese buyers.
Under new regulations published by the US Department of Commerce, the Bureau of Industry & Security said it is revising its license review policy for certain semiconductor exports to China and Macau.
Export applications will now be assessed on a case-by-case basis, rather than under a presumption of denial, for chips with total processing performance below 21,000 and dynamic random-access memory bandwidth under 6,500 gigabytes per second.
In Asia on Wednesday, markets were mixed. The Nikkei 225 index in Tokyo rose 1.4%. In China, the Shanghai Composite slipped 0.3%, while the Hang Seng Index in Hong Kong edged up 0.3%. The S&P/ASX 200 in Sydney closed 0.1% higher.
China's trade surplus surged 20% in 2025 to USD1.189 trillion from USD992.1 billion a year earlier, surpassing the USD1 trillion mark for the first time, according to data from the General Administration of Customs.
On a monthly basis, China's trade surplus increased 2.4% to USD114.14 billion in December from USD111.68 billion in November, exceeding the FXStreet-cited consensus forecast of USD113.6 billion.
Exports jumped 6.6% year-on-year in December, accelerating from a 5.9% rise in November and beating the 3.0% consensus forecast. Imports climbed 5.7%, up sharply from 1.9% in November and well above expectations for a 0.9% increase.
In Japan, Prime Minister Sanae Takaichi is expected to inform senior party officials on Wednesday of her intention to call a general election, media reports said, as she seeks to capitalise on strong public support.
Appointed Japan's first female prime minister in October, Takaichi's cabinet currently enjoys approval ratings of around 70%. However, her ruling bloc holds only a slim majority in the lower house, limiting its ability to advance an ambitious policy agenda.
Gold was quoted at USD4,627.40 an ounce early Wednesday, higher than USD4,598.33 on Tuesday.
Brent oil, which has firmed amid rising tensions involving Iran, was trading at USD65.20 a barrel early Wednesday, slightly lower than USD65.65 late Tuesday.
US President Donald Trump said Iranians should continue nationwide protests and take over the country's institutions as authorities there cracked down on mass demonstrations.
In Wednesday's corporate calendar, trading statements are due from Hays, Liontrust Asset Management, Vistry Group and Nichols, while Ramsdens Holdings posts full-year results and MS International reports half-year figures.
In the economic calendar on Wednesday, data due include US producer price index inflation and the current account balance, US existing home sales, US Energy Information Administration crude oil inventories, and the Federal Reserve's Beige Book.
By Eva Castanedo, Alliance News reporter
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