26th Aug 2026 06:58
(Alliance News) - Stocks in London are set to open higher on Wednesday, ahead of AI bellwether Nvidia's half-year results and the US Federal Reserve's preferred inflation measure of personal consumption expenditure data.
Meanwhile, in the Middle East, the foreign ministers of Iran and Oman said they have discussed a framework for a temporary corridor through the Strait of Hormuz, as well as a mine-clearing project in the waterway.
IG says futures indicate the FTSE 100 to open up 21.2 points, 0.2%, on Wednesday. The index of London large-caps closed up 31.84 points, 0.3%, at 10,886.16 on Tuesday.
Sterling was quoted at USD1.3634 early Wednesday, slightly higher than USD1.3632 at the London equities close on Tuesday. Against the euro, sterling was flat at EUR1.1684 against EUR1.1683 a day prior.
The euro traded at USD1.1665 early Wednesday, lower than USD1.1671 late Tuesday. Against the yen, the dollar was quoted lower at JPY158.98 versus JPY159.25.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.7%.
Investors will be eagerly waiting for half-year results from Nvidia, which Swissquote Senior Analyst Ipek Ozkardeskaya said some are calling "the central bank of AI".
"Of course, expectations are enormous – to say the least," she commented. "Q2 revenue is expected to have risen to nearly USD92bn – that's roughly +97% growth compared with the same period last year...But investors are increasingly spooked by the circular deals, financing guarantees and extra risk that the company is taking onto its shoulders to keep the ball rolling."
She continued: "Hence, simply beating the USD91bn guidance will not be enough. Any Q3 outlook below Wall Street's roughly USD104bn bar will likely leave investors focused on the growing macro-led pain instead – one that Nvidia cannot ease."
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.7%. In China, the Shanghai Composite was up 0.7%, while the Hang Seng index in Hong Kong was up 0.7%. The S&P/ASX 200 in Sydney was down 0.3%.
Gold was quoted at USD4,639.01 an ounce early Wednesday, lower than USD4,642.09 on Tuesday.
Brent oil was trading at USD85.87 a barrel early Wednesday, lower than USD89.31 late Tuesday.
In Wednesday's corporate calendar, there are half-year results from Faron Pharmaceuticals and Empresaria.
In the economic calendar on Wednesday, as well as PCE data the US has gross domestic product and durable goods releases.
Firstly, though, UK energy regulator Ofgem will release the incoming energy price cap shortly.
By Emma Curzon, Alliance News reporter
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