13th Aug 2025 06:57
(Alliance News) - Stocks in London are set to open higher on Wednesday, with market morale high after a softer-than-expected US inflation reading.
IG says futures indicate the FTSE 100 to open 20.8 points higher, 0.2%, at 9,168.61 on Wednesday. The index of London large-caps closed up 18.10 points, 0.2%, at 9,147.81 on Tuesday.
The pound faded to USD1.3501 early Wednesday, from USD1.3509 late Tuesday. The euro faded to USD1.1678 from USD1.1682. Against the yen, the dollar rose to JPY147.95 from JPY147.83.
The Nikkei 225 was up 1.4% in Tokyo. In China, the Shanghai Composite rose 0.5%, while the Hang Seng Index added 2.0%. In Sydney, the S&P/ASX 200 was down 0.5%.
"Asia woke up in full risk-on mode, riding the coattails of a US session that looked like someone hit the 'infinite bid' button after CPI didn't blow the inflation doors off," SPI Asset Management analyst Stephen Innes commented.
"Under the hood, the CPI read was a mixed cocktail — core prices rising at the fastest clip since January, but goods inflation tame enough to convince the market that tariffs aren't yet metastasizing into runaway prices. Translation: just hot enough to keep traders' ears perked, not hot enough to spook them. With that, September's rate cut odds were marked up to a near 90% probability, and the more adventurous desks are now flirting with a 50bp slash scenario."
The annual US consumer price inflation inflation rate was unchanged at 2.7% in July. This was the same as in June but lower than the FXStreet-cited market consensus of an uptick to 2.8%.
The monthly inflation rate slowed to 0.2% in July from 0.3% in June. The deceleration was as expected.
The yield on the 10-year US Treasury narrowed to 4.28% on Wednesday from 4.30% at the time of the London equities close on Tuesday. The 30-year yield eased to 4.88% from 4.89%.
A barrel of Brent fell to USD66.10 from USD66.29. Gold declined to USD3,348.01 an ounce from USD3,355.98.
In New York on Tuesday, the Dow Jones Industrial Average and S&P 500 added 1.1%, while the Nasdaq Composite climbed 1.4%.
President Donald Trump said Tuesday he might allow "a major lawsuit against" the US central bank chief to proceed, as he complained again about renovations to the Federal Reserve headquarters and renewed pressure to lower interest rates.
"The damage he has done by always being Too Late is incalculable," Trump wrote of Fed Chair Jerome Powell on his Truth Social platform.
He added that he is thinking of allowing a lawsuit taking aim at Powell's oversight on the renovations in Washington, but did not offer more details.
Trump has repeatedly lashed out at Powell this year over the Fed's decisions to keep interest rates steady since its last cut in December.
Wednesday's local corporate calendar has half year results from Lloyd's of London insurer Beazley, William Hill owner Evoke, and housebuilder Persimmon.
The global economic calendar on Wednesday has inflation figures in Germany at 0700 BST.
By Eric Cunha, Alliance News news editor
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