14th Oct 2026 06:54
(Alliance News) - Stocks in London are set to open slightly higher on Wednesday, after Asian equities most hit by Tuesday's chip sell-off recovered, before eyes turn to US data in the afternoon.
IG says futures indicate the FTSE 100 to open 8.9 points higher, 0.1%, at 10,659.23 on Wednesday. The index of London large-caps closed down 5.95 points, 0.1%, at 10,650.33 on Tuesday.
Wednesday's economic calendar has a US consumer price inflation reading at 1330 BST.
"The market expects prices to rise sharply by 0.6% month-on-month, which would push the annual inflation rate up to 3.6%. Much of this is once again attributable to higher energy prices. However, the expected increase in core inflation from 2.4% to 2.5% also shows that the story does not end with diesel prices," Commerzbank analyst Volkmar Baur commented.
The reading comes two weeks before the next Federal Reserve decision. According to the CME FedWatch Tool, there is a 79% chance the US central bank leaves rates unmoved.
The yield on the US 10-year Treasury was quoted at 5.20% early Wednesday, narrowing from 5.22% at the time of the London equities close on Tuesday. The yield on the US 30-year Treasury was quoted at 5.55%, slimming from 5.56%.
In Tokyo on Wednesday, the Nikkei 225 was up 0.7%. In China, the Shanghai Composite was down 0.3%, while the Hang Seng Index in Hong Kong was 0.6% higher. Sydney's S&P/ASX 200 was down 0.6%.
The Kospi in Seoul was 0.9% higher. But it had plunged more than 5% as chip sector names struggled.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, the S&P 500 marginally lower, and the Nasdaq Composite down 0.2%.
"The S&P 500 survived another ugly tech session, but the flat close disguised a market leaning increasingly on Mag 7 while semis and AI infrastructure keep taking body blows," SPI Asset Management analyst Stephen Innes commented.
"The AI trade is shifting from a demand story to a return-on-capital story, with Chinese competition, rising financing costs and widening credit cracks starting to test the margins underneath the buildout."
The chip sector was also a theme in Europe early Wednesday. The continent's largest listed company ASML said it expects fourth quarter total net sales between EUR14.2 billion and EUR15.2 billion. Reuters reported that analysts polled by LSEG expected sales of EUR14.19 billion.
Banking shares were a focus on Tuesday, but earnings failed to inspire. JPMorgan shares fell 0.9%, Wells Fargo lost 3.1% and Citigroup shed 5.6%.
Bank of America and Morgan Stanley report on Wednesday. Bank of America fell 2.3% after hours. The US Treasury Department said Tuesday that it is imposing penalties of more than USD1.2 billion on the bank, citing "violations of anti-money laundering and sanctions laws".
The US bank failed to properly report more than USD5 billion in "suspicious transactions," the department said.
The pound was quoted at USD1.3272 on Wednesday morning, rising from USD1.3249 at the time of the London equities close on Tuesday. Against the euro, sterling firmed to EUR1.1838 from EUR1.1834.
It hit the best level against the euro since early June, and was at a roughly one-week high versus the dollar.
The euro advanced to USD1.1208 from USD1.1194. Against the yen, the dollar was trading at JPY158.28 from JPY158.42.
Brent oil was quoted at USD106.29 early Wednesday, from USD105.83 late Tuesday afternoon. Gold traded at USD4,156.22 an ounce, down from USD4,163.06.
Wednesday's local corporate calendar has trading statements from asset manager Ashmore and recruiter Robert Walters.
By Eric Cunha, Alliance News news editor
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