Stocks called flat; UK CPI expected at 8.2%

(Alliance News) - Stocks in London are set to open flat on Wednesday, ahead of UK and EU inflation data.

IG says futures indicate the FTSE 100 to open up just 0.2 of a point at 7,453.89 on Wednesday. The index of London large-caps closed up 47.27 points, or 0.6% at 7,453.69 on Tuesday.

Investors are awaiting UK inflation data due shortly.

According to FXStreet-cited market consensus, the consumer price index is expected to show an annual rise of 8.2% in June, cooling from 8.7% in May.

In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.1%, the S&P 500 up 0.7% and the Nasdaq Composite up 0.8%.

Sentiment had been boosted by better-than-expected earnings from Bank of America and Morgan Stanley. Later on Wednesday, there will be results from Goldman Sachs, IBM, Netflix and Tesla.

The dollar was stronger in early exchanges in Europe.

Sterling was quoted at US1.3022 early Wednesday, lower than USD1.3083 at the London equities close on Tuesday. The euro traded at USD1.1226, lower than USD1.1237. Against the yen, the dollar was quoted at JPY139.35, up versus JPY138.76.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.8%. In China, the Shanghai Composite was down 0.4%, while the Hang Seng index in Hong Kong was down 1.0%. The S&P/ASX 200 in Sydney was up 0.5%.

In early UK company news, Rio Tinto said it expects to deliver iron ore shipments from Pilbara at the upper half of its annual guidance range, after building "further momentum" over the second quarter.

Pilbara iron ore shipments on a 100% basis fell 1% annually to 79.1 million tonnes, which was also down 4% from the first quarter. Pilbara iron ore production on a 100% basis rose 3% annually to 81.3 million tonnes in the second quarter, which was also up 2% from the prior quarter.

Over the first half as a whole, Pilbara shipments and production were 7% ahead of the prior year.

However, the miner reduced guidance for annual alumina and refined copper production.

Gold was quoted at USD1,975.70 an ounce early Wednesday, down from USD1,982.17 on Tuesday. Brent oil was trading at USD79.45 a barrel, lower than USD79.67.

In Wednesday's UK corporate calendar, there are trading statements from Antofagasta, BHP, Severn Trent and Hargreaves Lansdown.

The economic calendar has UK inflation data at 0700 BST followed by EU inflation data at 1000 BST.

By Elizabeth Winter, Alliance News senior markets reporter

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