17th Jun 2026 06:57
(Alliance News) - Stocks in London are set to open slightly lower on Wednesday, ahead of UK inflation data and a US Federal Reserve interest rate decision later in the day.
IG says futures indicate the FTSE 100 to open 14.6 points lower, 0.1%, at 10,479.61 on Wednesday. The index of London large-caps closed up 0.6% at 10,494.21 on Tuesday.
Sterling was quoted at USD1.3427 early Wednesday, higher than USD1.3422 at the London equities close on Tuesday. Against the euro, sterling fell to EUR1.1560 from EUR1.1567 a day prior.
The euro traded at USD1.1611 early Wednesday, higher than USD1.1603 late Tuesday. Against the yen, the dollar was quoted at JPY160.42, lower versus JPY160.46.
Attention early Wednesday will turn to a raft of UK inflation figures due at 0700 BST.
Consumer price inflation is expected to have risen 0.4% on-month in May, slowing from 0.7% in April.
Input producer price inflation is forecast to increase 0.5% on-month, after a 2.4% rise in April, while the retail price index is expected, after it rose 0.7% on-month and 3.0% on-year in April.
Meanwhile, UK Prime Minister Keir Starmer said French and Indian companies will invest GBP1.3 billion in clean energy and artificial intelligence projects across the UK, creating more than 1,400 jobs in Manchester, Leeds and Birmingham.
On the geopolitical front, the US and Iran are set to launch talks on a final settlement to their conflict on Friday in Switzerland, officials said.
Negotiations on a permanent agreement are due to begin immediately after a signing ceremony and continue through a 60-day window, covering the future of Iran's nuclear programme and the lifting of international sanctions.
However, hopes that the Middle East conflict may be nearing an end were dented by fresh Israeli strikes in southern Lebanon. Iran's central military command warned Israel to "await a harsh response", while Lebanon's state news agency reported strikes on vehicles near Nabatieh that killed four people. The Israeli military said it targeted a suspicious vehicle near its forces and later intercepted rockets before conducting an air strike on a launcher.
Oil prices nevertheless remained below the USD80 mark breached on Tuesday. Brent oil was quoted at USD79.39 a barrel early Wednesday, lower than USD79.95 late Tuesday.
Iranian oil tankers have exited the Gulf zone blockaded by the US Navy, TankerTrackers said, describing the shipments as the country's "first crude oil exports in two months".
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.6%, the S&P 500 down 0.6% and the Nasdaq Composite down 1.2%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.7%, after data showed Japan's trade deficit narrowed in May as export growth outpaced imports.
According to provisional Ministry of Finance figures, Japan recorded a trade deficit of JPY378.67 billion, about USD2.36 billion, compared with a JPY662.47 billion deficit a year earlier. Exports rose 17.0% year-on-year, beating forecasts, while imports increased 12.5%.
In China, the Shanghai Composite was marginally higher, while the Hang Seng index in Hong Kong was down 0.7%.
The S&P/ASX 200 in Sydney was up 0.6%, supported by data showing Australian household spending returned to growth in May.
The Commonwealth Bank household spending insights index rose 0.2% on a seasonally adjusted basis, reversing a 1.2% decline in April, helped by spending on travel and events.
Gold was quoted at USD4,332.10 an ounce early Wednesday, higher than USD4,323.46 on Tuesday.
In Wednesday's corporate calendar, AO World, Castings, CML Microsystems and Speedy Hire report full-year results, while Oxford Metrics publishes half-year results and PZ Cussons, known for the Carex hand wash, issues a trading statement.
In the economic calendar on Wednesday, UK CPI and PPI data are due, alongside eurozone CPI, Ireland's trade balance and Switzerland's SECO economic forecasts.
Later in the day, attention turns to the US, where retail sales figures, EIA crude oil stocks data and the Federal Reserve's interest rate decision are scheduled.
By Eva Castanedo, Alliance News reporter
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