Stocks to rise as UK CPI print due

(Alliance News) - The FTSE 100 is set to open higher on Wednesday, with the index likely to benefit from rising oil prices sparked by tensions in the Middle East, and a stronger outlook for commodities following stronger-than-expected Chinese economic data.

IG says futures indicate the FTSE 100 to open up 14.7 points, 0.2%, at 7,689.9 on Wednesday. The index of London large-caps added 44.58 points, 0.6%, at 7,675.21 on Tuesday.

There is an all-important UK consumer price index reading shortly.

This is expected to show the UK annual inflation rate eased to 6.5% last month from 6.7% in August, according to FXStreet-cited market consensus. The core inflation is predicted to cool to 6.0% from 6.2%.

However, the global economy could face renewed inflationary pressures, as tensions run high in the Middle East, driving up oil prices overnight. Brent oil was trading at USD91.6 a barrel early Wednesday, up sharply than USD89.41 late Tuesday.

US President Joe Biden's wartime trip to Israel and Jordan faltered before it got off the ground, after the Amman leg was canceled following a strike on a Gaza hospital that killed hundreds of people.

The trip was always set to be the riskiest of Biden's presidency as he tried to juggle support for Israel after the October 7 Hamas attacks with efforts to prevent a humanitarian disaster in Gaza and to avert a wider war. But his regional balancing act came undone on the eve of his visit with news of the hospital explosion.

Health authorities in Gaza said the explosion at the Ahli Arab Hospital killed between 200 and 300 people and was caused by the latest in a wave of Israeli airstrikes. Hamas said in a statement 500 had died. Israeli Defense Forces blamed Palestinian militants, saying an outgoing Islamic Jihad rocket misfired.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.1%. In China, the Shanghai Composite was down 0.7%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney closed up 0.3%.

Markets in Asia were also digesting stronger-than-expected Chinese economic data.

China's economy grew more than expected in the third quarter, data showed, but the reading was still below target and officials continue to face calls for more stimulus while struggling to contain an unprecedented property crisis. The 4.9% expansion in July-September was higher than expectations of 4.4%, according to FXStreet-cited consensus. It was slower than the 6.3% in the second quarter, however. Quarterly economic growth picked up to 1.3%, above forecasts of 1.0%, and beat 0.8% in the second quarter.

Retail sales, the main indicator of household consumption, which the National Bureau of Statistics said rose a better-than-expected 5.5% on-year in September. This was better than forecasts of 4.9%, and faster than the 4.6% recorded for August.

Sterling was quoted at USD1.2186 early Wednesday, edging down from USD1.2191 at the London equities close on Tuesday. The euro traded at USD1.0580 early Wednesday, little changed from USD1.0581. Against the yen, the dollar was quoted at JPY149.69, down versus JPY149.74.

Gold was quoted at USD1,938.75 an ounce early Wednesday, higher than USD1,924.08 on Tuesday.

In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average marginally higher, the S&P 500 was flat, and the Nasdaq Composite shed 0.3%.

Following the morning's UK inflation data, there is also a eurozone reading at 1000 BST.

The local corporate calendar has trading statements from gambling firm 888, miner Antofagasta, property investor Segro and wealth management company Quilter. Premier Inn owner Whitbread reports half-year results.

By Elizabeth Winter, Alliance News senior markets reporter

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