The FTSE 100 gained 8.84 points during the morning session today, or 0.12%. “The markets seem to be in consolidation mode on Wednesday after their see-saw start to the week,” says AJ Bell investment director Russ Mould.
US and Asian stocks built on their previous day’s gains overnight and the FTSE 100 was broadly unchanged at the bell this morning.
“While recent market sentiment has been dictated by the US Federal Reserve, their counterparts in the Bank of England will take centre stage later today when they deliver their monthly address,” Mould said.
The UK central bank is facing pressure to show it can keep inflation under control after it failed to accurately forecast inflation levels this year.
“Investors might expect some guidance on the future trajectory of UK interest rates although consumer prices are merely bubbling on this side of the Atlantic when compared with the boiling point they have already reached in the US.”
A lot will come down to how transitory the current elevated levels of inflation prove to be.
FTSE 100 Top Movers
Shell (2.21%), Anglo American (1.71%) and BP (1.7%) are heading up the FTSE 100 a couple of hours into the morning session on Wednesday.
At the other end, Fresnillo (-2.09%), Phoenix Group Holdings (-1.95%) and GlaxoSmithKline (-1.41%), are trailing the pack.
