London pre-open: Stocks to gain; Taylor Wimpey, Spirax updates in focus

(Sharecast News) - London stocks were set to rise at the open on Wednesday following a mostly positive session in Asia, and having given up the previous day's gains to end lower after a hotter-than-expected US inflation print boosted expectations of a December rate hike from the Federal Reserve. The FTSE 100 was called to open around 50 points higher.

Ipek Ozkardeskaya senior analyst at Swissquote, said: "We had a sharp reversal in macro sentiment yesterday. The main story going into the US inflation figures- apart from reports of Jensen Huang's affair with a suspected Chinese spy - was falling oil prices on Middle East peace hopes. Softer oil prices were easing inflation expectations, while lower yields were helping major indices recover last week's losses.

"But the stronger-than-expected US CPI figures reversed the positive mood, fuelling hawkish Federal Reserve (Fed) expectations, pushing US yields sharply higher and equities lower. The US 2-year yield, which best captures expectations for Fed rates, rose more than 20bp as the figures cemented expectations that the Federal Reserve (Fed) will raise rates when it meets in December."

In commodity markets, oil prices were creeping higher again and by 0725 GMT, Brent crude was up 0.7% at $92.16 a barrel and West Texas Intermediate was 0.3% firmer at $86.33.

Danske Bank said: "We think there is limited further downside potential for oil prices in the near-term and that the market will be prone to trade on headlines from peace talks and possible impeachment of US Defence Secretary Pete Hegseth.

"The Brent forward market prices in a further drop in Brent crude just below USD 80/bbl on 12M - still far above the USD 60-65/bbl from the beginning of the year."

In corporate news, housebuilder Taylor Wimpey flagged FY26 adjusted operating profit towards the bottom end of consensus after a softer autumn selling season and higher interest rates reducing mortgage affordability.

Analysts are forecasting earnings of £262m-£299m, according to a company compiled consensus.

Engineering specialist Spirax said that trading momentum had strengthened in recent months, with both organic sales growth and profit margins running ahead of first-half levels, leaving the firm confident of meeting its full-year guidance.

Spirax said group organic revenue growth and adjusted operating profit margins for the 10 months ended 31 October were in line with expectations and ahead of the first half, supported by continued execution of its "Together for Growth" strategy.