London before opening: Shares set up ahead of US inflation

London shares were set to rise at the opening on Wednesday after a positive session on Wall Street as investors watch the latest US inflation measurement.

The FTSE 100 was called to open 44 points higher at 7,535.

CMC markets analyst Michael Hewson said: “Due to yesterday’s US recovery and a decent Asia session, which was helped by some softer Chinese inflation figures, European markets appear to be opening higher as we look forward to today’s US CPI report for December , which could again trigger volatility if we get a figure well north of 7%.

“The recent decision by the Federal Reserve to accelerate its $ 30 billion-a-month downsizing program confirmed that Fed officials are now much more concerned about inflation than they are about the labor market.

“With a rate hike in March that is now almost a closed deal, today’s US CPI is likely to be a key signal in the broader discussion of how many more hikes are coming, while central banks are struggling with a dilemma of rising price pressures, the risk of an economic downturn caused by tighter restrictions and a fall in consumer confidence. “

In UK corporate news, JD Sports lifted annual profit forecasts after revenue rose 10% in the 22 weeks to January 1, and fiscal stimulus from the US increased trade.

The sportswear chain said it expected a pre-tax profit of at least £ 875 million compared to previous expectations of £ 810 million. It added that US fiscal stimulus “may have contributed up to £ 100 million to this result”.

Distribution and service company Bunzl bought New Jersey-based PPE distributor Tingley Rubber for an undisclosed amount. Bunzl said the U.S. company, which focuses on protective footwear and clothing, generated $ 68.0 million. USD in revenue during 2021.

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