16th Sep 2026 06:58
(Alliance News) - Stocks in London are set to open higher on Wednesday ahead of UK inflation data and a US Federal Reserve interest rate decision, with investors also monitoring the mounting cost of the conflict with Iran.
IG says futures indicate the FTSE 100 to open 30.5 points higher, 0.3%, at 10,688.63 on Wednesday. The index of London large-caps closed down 0.4% at 10,658.13 on Tuesday.
Back in the UK, attention turns to a key batch of inflation data due at 0700 BST.
Consumer price inflation is expected to have risen 3.1% on an annual basis in August, accelerating from 2.9% in July, while monthly CPI is forecast to have increased 0.5% after a 0.3% rise in July.
Producer input prices are expected to have risen 0.4% month-on-month in August, following a 1.7% decline in July. Meanwhile, the retail price index is forecast to have accelerated to 3.5% annually from 3.2%.
Sterling was quoted at USD1.3488 early Wednesday, marginally higher than USD1.3485 at the London equities close on Tuesday. Against the euro, sterling edged up to EUR1.1682 from EUR1.1681 a day prior.
The euro traded at USD1.1547 early Wednesday, marginally higher than USD1.1545 late Tuesday. Against the yen, the dollar was quoted at JPY155.23 versus JPY155.12.
Brent oil was trading at USD108.04 a barrel early Wednesday, lower than USD108.48 late Tuesday.
The war with Iran has cost the US military around USD38 billion as of August 1, according to a report from the non-partisan Congressional Budget Office, with the bill expected to rise by USD2 billion to USD3 billion per month if the conflict continues.
The CBO said the largest single cost has been replacing munitions used in the conflict, estimated at USD21.7 billion. The overall figure also reflects higher fuel costs and the replacement of equipment lost in combat.
Separately, a US military task force is working to strengthen intelligence-sharing and planning assistance for Saudi forces as the kingdom faces attacks from Yemen's Iran-backed Houthi fighters, a US official said.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.5% and the Nasdaq Composite down 0.8%.
OpenAI said the world's largest artificial intelligence companies are working towards establishing an industry standards body as concerns grow over the risks posed by increasingly powerful AI systems.
The ChatGPT maker said it is collaborating with Anthropic and Alphabet's Google on a proposal first put forward by Google DeepMind Chief Executive Demis Hassabis for a self-regulatory organisation modelled on the Financial Industry Regulatory Authority, which oversees US brokerage firms.
OpenAI said the body would require significant industry funding to attract technical expertise and provide the computing resources needed to test advanced AI systems before public release.
In Asia on Wednesday, the Nikkei 225 index in Tokyo rose 0.3%. In China, the Shanghai Composite gained 0.7%, while the Hang Seng index in Hong Kong added 0.2%. The S&P/ASX 200 in Sydney was up 0.3%.
Gold was quoted at USD4,329.26 an ounce early Wednesday, higher than USD4,285.70 on Tuesday.
In Wednesday's corporate calendar, Barratt Redrow reports full-year results, Moonpig Group issues a trading statement, while Pan African Resources and Supermarket Income REIT publish full-year results.
In the economic calendar on Wednesday, the UK releases CPI, PPI and RPI data.
The eurozone publishes industrial production figures, while the US releases retail sales, export and import prices, before the Federal Reserve announces its latest interest rate decision.
By Eva Castanedo, Alliance News senior economics reporter
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