London pre-open: Stocks to edge up as investors digest inflation data
(Sharecast News) - London stocks were set to edge up at the open on Wednesday as investors digest the latest UK inflation data.
The FTSE 100 was called to open eight points higher at 7,180.
Figures released earlier by the Office for National Statistics showed that inflation rose to 2.1% in May from 1.5% in April, coming in above the Bank of England's 2% target and expectations for a reading of 1.8%. It also marked the highest consumer price inflation reading since July 2019.
ONS chief economist Grant Fitzner said: "The rate of inflation rose again in May and is now above 2% for the first time since the summer of 2019.
"This month's rise was led by fuel prices which fell this time last year, but have jumped this year thanks to rising crude prices. Clothing prices also added upward pressure as the amount of discounting fell in May."
After the European close, investors will eye the latest policy announcement from the US Federal Reserve.
In corporate news, Oxford Instruments said it had bought Germany's Wissenschaftliche Instrumente und Technologie (WITec) for up to €42m.
WITec is a Raman microscopy imaging provider based in Ulm. The deal is on a debt-free basis with €5m of the purchase price conditional on trading performance over a period of 12 months following completion.
Apax Global Alpha said that the Apax X fund, in which it is a limited partner, has signed a definitive agreement to acquire a majority ownership stake in CyberGrants.
The FTSE 250 company said CyberGrants provides software-as-a-service (SaaS) products for corporate social responsibility (CSR), employee engagement, and volunteer management.
It said the transaction was expected to close in the third quarter, adding that on a look-through basis, it was expecting to invest up to $13.9m in the company, depending on final closing arrangements.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.