The FTSE 100 was trading in a tight range on Wednesday morning as investors hunkered down ahead of US inflation due later in the session.
The ongoing conflict in the Middle East kept oil prices higher also sapping enthusiasm for stocks. Brent Crude was trading at $88.91 at the time of writing.
US futures were higher after AI infrastructure company CoreWeave helped spark a rally in the tech sector.
But this didn’t spill over into the FTSE 100 with London’s leading index trading down 6 points at 10,837 at the time of writing.
“European stock markets remained in a holding pattern as investors digested the latest events in the Middle East,” said Russ Mould, investment director at AJ Bell.
“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.
“There are 35 days until the Fed’s next interest rate decision and markets are divided as to whether it will hold rates firm or push through a quarter percentage point increase.”
Underscoring the lack of conviction in stocks on Wednesday, the FTSE 100 winners and losers were split almost 50:50 at the time of writing.
Housebuilders were higher again as Persimmon continued to benefit from a positive broker note issued yesterday. Persimmon and Barratt Redrow were higher by 1.7% and 2.3% respectively.
Endeavour Mining was the FTSE 100’s top riser as gold prices rose ahead of US inflation data. Fresnillo was 2% higher. Polar Capital Technology Trust enjoyed a better session as US tech shares perked up.
Tesco was the FTSE 100 was at the bottom of the leaderboard, losing 3%.