FTSE 100 Set for Gains Amid Inflation and Fed Decision
The FTSE 100 index is expected to open higher on Wednesday, ahead of key economic data releases and a pivotal Federal Reserve decision. The UK inflation figures for August are anticipated to show a slight increase, with a 3.1% annual rate predicted, up from 2.9% in July.
The Bank of England's interest-rate decision on Thursday will be closely watched, particularly given the current high oil prices. Markets are also looking to the Federal Reserve for guidance, with traders assigning over a 90% probability to a 25 basis point rate hike.
On Wall Street, the S&P 500, Dow Jones, and Nasdaq indices all closed lower on Tuesday, weighed down by higher bond yields and energy prices. Brent crude oil remains near $108 per barrel, with investors monitoring the ongoing conflict in Iran and attacks on Saudi Arabia.
The US Congressional Budget Office estimates that the conflict has already cost the US military around $38 billion by August 1, with potential additional costs of $2-3 billion per month.