Lunchtime market roundup: FTSE 100 edges up before US inflation data

The FTSE 100 edged marginally higher heading into Wednesday afternoon, but the DAX 40 in Frankfurt defied some pre-US inflation data caution as it achieved another record high.

The FTSE 100 index traded up 7.91 points, 0.1%, at 10,852.10. The FTSE 250 rose 133.25 points, 0.5%, at 24,933.00. The AIM all-share was up 4.50 points, 0.6%, at 804.07.

The Cboe UK 100 was flat at 1,078.31, the Cboe UK 250 was 0.6% higher at 21,715.88, and the Cboe small companies was up 0.4% at 19,046.99.

In European equities on Wednesday, the CAC 40 in Paris was down 0.1%.

The DAX 40 in Frankfurt was up 0.5%. Siemens Energy, Infineon and Rheinmetall, among its largest constituents, were some of the best performers on Wednesday, helping the index achieve its best-ever level of 26,528.39 points.

The FTSE 100 achieved a record intraday high at the end of July, though August has been tougher going so far, with the blue-chip benchmark down 0.1% so far this month, putting more distance between it and the elusive 11,000 point mark.

"European stock markets remained in a holding pattern as investors digested the latest events in the Middle East," AJ Bell analyst Russ Mould commented.

"Yet more attacks on shipping suggest there is no end in sight to the conflict. The renewed tensions have put oil back on an upwards path and muddied the waters with regards to inflation expectations and what that means for interest rates. The Federal Reserve will be watching events closely alongside data later today on US consumer prices which are expected to have edged up slightly in July."

According to consensus cited by FXStreet, a slowdown in the annual rate of US inflation to 3.4% in July from 3.5% in June is expected. The data is released at 1330 BST.

The pound was higher at USD1.3520 on Wednesday afternoon, from USD1.3509 on Tuesday afternoon, and against the euro, it was up EUR1.1715 from EUR1.1706.

The single currency bought USD1.1537 on Wednesday, down from USD1.1541 at the time of the closing bell in London on Tuesday. Against the yen, the dollar rose to JPY159.11 from JPY159.28.

The yield on the US 10-year Treasury eased to 4.67% on Wednesday from 4.69% on Tuesday. The yield on the US 30-year Treasury narrowed to 5.22% from 5.24%.

In New York, the Dow Jones Industrial Average is called up 0.1%, the S&P 500 up 0.3% and the Nasdaq Composite 0.7% higher.

Swissquote analyst Ipek Ozkardeskaya commented: "Both headline and core inflation metrics may have eased in July thanks to a notable pullback in energy prices, yet oil prices have rebounded since then. US gasoline prices, for example, fell sharply before rebounding from their August dip. Hence, today's US CPI print will give an idea of how fast inflation could fade when the Iran war is over and the upside pressure on energy prices fades for good. But it won't tell us what the Federal Reserve should do next, as next month's figures will again be tainted by a rebound in energy prices.

"Whatever the data says today, the upside risks to inflation won't fade. But if the numbers are softer than those pencilled in by analysts, we might well see a rally in both bonds and stocks, as the earnings season is going surprisingly well for US and European companies. The former are on track to print 50% earnings growth, while the latter are enjoying 22% earnings growth despite the energy shock."

A barrel of Brent rose to USD88.80 on Wednesday, from USD88.22 at the time of the London equities close on Tuesday.

The International Energy Agency on Wednesday sharply reduced its forecast for global oil demand this year, as supplies remain crimped by the closure of the Strait of Hormuz and high prices deter buyers.

Demand is expected to slump by 1.6 million barrels per day, compared with its forecast slump of one million barrels in its previous monthly report in July.

Crude prices have remained well above levels seen before the US and Israeli attacks on Iran in late February, sparking a war that has seen oil infrastructure damaged in several Gulf countries.

Tehran also responded by effectively shutting down tanker and cargo traffic in the Strait of Hormuz, through which around one-fifth of global oil supplies usually transit.

"The ongoing closure of the Strait of Hormuz and elevated fuel prices continue to weigh on oil consumption," the Paris-based IEA said.

The US has "total control" over the Strait of Hormuz, US President Donald Trump said on Tuesday.

"We totally control the Strait of Hormuz. We have control over it; nobody else, only us," he told reporters.

He went on to say: "I'm the last person to trust Iran. They've lied to me constantly. We have total control over the Hormuz Strait right now. They don't have control."

Gold rose to USD4,414.03 an ounce Wednesday, from USD4,376.20 late Tuesday. Endeavour Mining shares rose 3.1%, while Fresnillo added 3.0%, as the gold miners topped the FTSE 100.

Tesco fell 2.8% after Shore Capital lowered the grocer to 'hold'.

Shares in Balfour Beatty jumped as it lifted profit and cash guidance underpinned by a bumper order book.

Chief Executive Philip Hoare said the strong first-half performance reflects the "quality of our business", adding the firm "enters the second half with real momentum".

Balfour Beatty said pretax profit fell 2.3% to £129 million in the first six months of 2026 from £132 million the year prior. Underlying profit from operations from earnings-based businesses increased 42%, however, to £153 million from £108 million.

As a result of the strong results, Balfour Beatty increased 2026 guidance for earnings-based business profit from operations to low double-digit percentage growth from a high single-digit percentage growth view before.

The stock traded 8.2% higher on Wednesday.

On AIM, 80 Mile slumped 23%. The exploration and development firm, with assets in Greenland, Finland and Italy, now expects drilling at the Jameson Land Basin project to be delayed.

This follows "ongoing engagement with the Greenlandic authorities". It had been aiming for drilling during the 2026/27 winter season.

"This delay relates to the time required to complete the permitting and regulatory approval process and does not reflect any change to the company's plans for Jameson. 80 Mile remains fully committed to the project and intends to commence drilling as soon as the necessary approvals have been received and the programme can be undertaken safely and responsibly," 80 Mile added.

The company said that in 2025, a milestone agreement with March GL, to be renamed Greenland Energy, enabled plans for two fully funded 3,500-metre drill holes into the basin.

"Regarding recent media coverage of equipment being landed on the project area in contravention of existing regulations 80M confirms that the company has received a formal warning from the government of Greenland concerning the landing of equipment at Nerlerit Inaat airport, near Ittoqqortoormiit in East Greenland. For the sake of completeness, it's important to highlight that the equipment was predominantly accommodation and camp containers taken from Dundas, the company's Titanium project in the far northwest of Greenland and sent to Nerlerit Inaat airport."

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