18th Feb 2026 06:58
(Alliance News) - Stocks in London are set to open higher on Wednesday, ahead of consumer and producer inflation data from the UK.
"The 'sweet' combination of rising unemployment and easing inflation strengthens the case for rate cuts and has boosted appetite for UK assets," said Swissquote's Ipek Ozkardeskaya, looking back on Tuesday's UK labour market data, which showed unemployment reaching "its highest level since the pandemic".
She continued: "A sufficiently soft inflation report this morning should cement the expectation that the BoE will cut rates in March and again in June to support an economy strained by harsh fiscal stance."
IG says futures indicate the FTSE 100 to open up 27.5 points, 0.3%, on Wednesday. The index of London large-caps closed up 0.8% at 10,556.17 on Tuesday.
Sterling was quoted at USD1.3558 early Wednesday, higher than USD1.3531 at the London equities close on Tuesday.
The euro traded at USD1.1844 early Wednesday, higher than USD1.1830 late Tuesday. Against the yen, the dollar was quoted lower at JPY153.44 versus JPY153.61.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.1% and the Nasdaq Composite up 0.1%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 1.0%. In China and Hong Kong, markets are closed for the Lunar New Year. The S&P/ASX 200 in Sydney closed up 0.5%.
Gold was quoted at USD4,934.97 an ounce early Wednesday, higher than USD4,882.00 on Tuesday.
Brent oil was trading at USD67.63 a barrel early Wednesday, higher than USD67.17 late Tuesday.
In geopolitical news, Iran's Foreign Minister Abbas Araghchi said the latest talks with the US saw them agree on "a set of guiding principles" and that "the atmosphere was more constructive" than previously.
That said, Iran has not agreed to all the "red lines" set out by US President Donald Trump for a diplomatic solution, Vice President JD Vance said.
In Wednesday's corporate calendar, Glencore releases full-year results.
In the economic calendar on Wednesday, France releases consumer inflation data shortly after the UK. Several US releases are also due in the afternoon, including industrial production.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.