Wednesday Morning Markets: FTSE 100 Flat as Investors Await US Inflation Data

London’s benchmark index opened broadly unchanged on Wednesday, with the FTSE 100 flat and the FTSE 250 edging up 0.1%, as investors positioned cautiously ahead of key US inflation data due later today.

On the continent, Germany’s DAX has risen 0.2%, France’s CAC 40 gained 0.2%, and the Stoxx 50 is flat, reflecting a similarly wait-and-see mood across Europe.

Commodities were firmer, with Brent crude up 0.7% at $89.54 a barrel and WTI gaining 0.8% to $83.91. Spot gold jumped 0.9% to $4,408, lifting mining stocks, with Glencore, Fresnillo and Anglo American each rose around 0.8%.

Turning our attention to the AI trade, UBS said in a note published Tuesday that “earnings should stay supported,” citing robust demand for AI compute and cloud infrastructure, and argued “the AI trade has further upside,” recommending investors “retain diversified exposure across the value chain.”

FTSE 100 movers: BAE Systems leads the risers, up 1.52%, alongside Lion Finance Group (+1.43%) and Barratt Redrow (+1.38%).

On the downside, Burberry fell 2.44%, Tesco dropped 1.99% and JD Sports slid 1.76%.

FTSE 250 standouts: Balfour Beatty is the standout gainer so far, surging 10.28% after half-year results showed underlying profit from operations rising to £119 million and EPS higher at 21.7p.

The construction group raised its full-year guidance, lifted its interim dividend by 12%, and cited a record £22.9 billion order book.

Ceres Power Holdings (+4.56%) and AEP Plantations (+3.90%) also advanced.

Atalaya Mining leads the fallers, down 6.44%, after Trafigura sold its remaining 16.8 million shares via a secondary placing at 915p, raising roughly £154 million and fully exiting its stake.

Hansa Investment Company fell 3.55% and International Workplace Group dropped 3.50%.

Elsewhere, Hill & Smith posted half-year results, while Primary Health Properties confirmed post-offer intention statements, and Avere Therapeutics announced plans to merge with NextCure Inc.

Markets now turn their attention to this afternoon’s US inflation print, which could set the tone for global equities into the second half of the week.