Key facts
- The FTSE 100 index was largely flat, edging up 0.04% to 10,848.75 points.
- The midcap FTSE 250 index climbed 0.5% to 24,916.12 points, nearing a record high.
- Balfour Beatty shares surged 9.2% to a record high after the company raised its annual profit forecast.
- Anglo American and Rio Tinto shares rose over 1% each.
- Global markets remained cautious ahead of U.S. inflation data due at 1230 GMT.
- Investors are also awaiting UK GDP data on Thursday, expected to show stalled growth.
London's FTSE 100 index traded largely flat on Wednesday, with investors adopting a cautious stance ahead of crucial U.S. inflation data. The midcap FTSE 250 index, however, outperformed, climbing 0.5% and on track to close at a record high.
Global stock markets also showed little movement as investors awaited U.S. consumer price index data for July, which is expected to indicate a moderate increase. Such a reading could temper expectations for further interest rate hikes by the Federal Reserve this year. Last week's weaker-than-expected U.S. jobs report had already softened rate hike forecasts, though ongoing concerns about the Middle East conflict continue to influence market sentiment.
Brent crude futures saw a slight dip but remained near $90 a barrel, influenced by reports of separate attacks on shipping by the U.S. and Yemen's Iran-aligned Houthis, suggesting a potential dimming of prospects for ending the Iran war.
Market participants are also looking ahead to the UK's GDP data, scheduled for release on Thursday. Economists anticipate that economic growth in June may have stalled month-over-month, following a modest 0.1% growth in May.
In a BBC interview, Britain's new Prime Minister Andy Burnham stated his government would endeavor to reduce business costs, while acknowledging the challenging financial outlook. Traders are currently pricing in a 46% probability of a 25-basis-point interest rate hike by the Bank of England in December.
Boosting the midcap index, shares of Balfour Beatty surged 9.2% to a record high after the British construction group elevated its annual operating profit forecast, citing robust demand for infrastructure projects in both the United States and the UK. Mining companies Anglo American and Rio Tinto also saw gains of over 1% each, supported by a slight increase in copper prices attributed to a temporary shutdown at a major Indonesian smelter impacting global supply.