(Alliance News) - Stocks in London were set to start lower on Wednesday, with the latest batch of UK inflation data due before the open.
IG says futures indicate the FTSE 100 index of large-caps to open down 31.0 points, or 0.4%, at 7,731.95 on Wednesday. On Tuesday, the index closed down 8.04 points, 0.1%, at 7,762.95.
The latest batch of UK inflation data, for the month of April, is reported on Wednesday at 0700 BST.
The annual inflation rate is expected to slow to 8.2% from 10.1% in March, according to FXStreet cited consensus.
The UK is forecast to avoid a recession this year, but high interest rates will likely be needed for some time yet to tackle inflation, according to the International Monetary Fund.
The IMF, in a new assessment of the UK economy, upgraded growth to 0.4% this year after having forecast last month that UK output was expected to contract by 0.3%.
Elsewhere in Wednesday's economic diary, there is a UK house price index reading at 0930 BST, before Irish labour market data at 1100 BST.
In the US on Tuesday, stocks ended lower, as the deadline to resolve the debt ceiling crisis crept closer with no resolution in sight. The Dow Jones Industrial Average closed down 0.7%, the S&P 500 down 1.1% and the Nasdaq Composite down 1.3%.
The White House says some progress was made in the latest round of talks with Republican negotiators to avert a catastrophic US debt default before a June 1 deadline.
"We are seeing movement", White House Press Secretary Karine Jean-Pierre told reporters Tuesday afternoon, adding: "Both sides have to understand that they're not going to get everything that they want."
However, Republican Representative Ralph Norman warned that House Speaker Kevin McCarthy had said the two sides were "not anywhere near close" to an agreement.
Sterling was quoted at USD1.2434 early Wednesday in London, higher than USD1.2420 at the London equities close on Tuesday. The euro traded at USD1.0781 early Wednesday, higher than USD1.0774 late Tuesday. Against the yen, the dollar was quoted at JPY138.31, down from JPY138.52.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.5%. In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong was down 1.2%. The S&P/ASX 200 in Sydney closed down 0.7%.
Gold was quoted at USD1,978.12 an ounce early Wednesday, higher than USD1,965.99 on Tuesday. Brent oil was trading at USD77.55 a barrel early Wednesday, higher than USD77.00 late Tuesday.
Wednesday's UK corporate diary has a trading statement from insurer Aviva, gym chain operator Gym Group and construction firm Kier Group.
Retailer Marks & Spencer and electricity utility SSE report annual results.
By Sophie Rose, Alliance News reporter
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