12th Aug 2026 06:53
(Alliance News) - Stocks in London are set to open lower on Wednesday, ahead of an eagerly-anticipated US inflation reading, and as oil continues to creep higher on Hormuz nerves.
According to consensus cited by FXStreet, a slowdown in the annual rate of US inflation to 3.4% in July from 3.5% in June is expected. The data is released at 1330 BST.
"A soft print should push yields and the dollar lower and give growth equities more room to run. A hotter print, especially with oil already elevated, would be far more uncomfortable," Quintex Intel analyst Stephen Innes commented.
IG says futures indicate the FTSE 100 to open 26.9 points, 0.3%, at 10,817.29 on Wednesday. The index of London large-caps closed down 18.31 points, 0.2%, at 10,844.19 on Tuesday.
The pound was slightly lower at USD1.3504 on Wednesday morning, from USD1.3509 on Tuesday afternoon, while against the euro, it softened slightly to EUR1.1703 from EUR1.1706.
The single currency bought USD1.1535 on Wednesday, down from USD1.1541 at the time of the closing bell in London on Tuesday. Against the yen, the dollar rose to JPY159.39 from JPY159.28.
The yield on the US 10-year Treasury eased to 4.68% on Wednesday from 4.69% on Tuesday. The yield on the US 30-year Treasury narrowed to 5.23% from 5.24%.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 down 0.3% and the Nasdaq Composite down 0.6%.
Gold rose to USD4,391.01 an ounce Wednesday, from USD4,376.20 late Tuesday. A barrel of Brent rose to USD89.32 from USD88.22.
The US has "total control" over the Strait of Hormuz, US President Donald Trump said on Tuesday.
"We totally control the Strait of Hormuz. We have control over it; nobody else, only us," he told reporters.
He went on to say he did not trust Iran.
"I'm the last person to trust Iran. They've lied to me constantly. We have total control over the Hormuz Strait right now. They don't have control."
The dispute over transit rights in the strait, a key international route for oil, gas and fertilizer, is considered one of the main triggers for the recent escalation in the military conflict between Washington and Tehran.
In Tokyo, the Nikkei 225 was up 0.9% on Wednesday. Financial markets in Tokyo had been closed on Tuesday for a public holiday. In China, the Shanghai Composite was up 0.1%, though the Hang Seng Index shed 1.1%. Sydney's S&P/ASX 200 was down 0.5%.
Wednesday's UK corporate calendar has half-year results from infrastructure firm Balfour Beatty and William Hill owner Evoke.
By Eric Cunha, Alliance News news editor
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