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U.S. equity futures moved higher on Wednesday after the latest personal consumption expenditures inflation report showed monthly price growth below economists’ forecasts.

The Commerce Department reported that the PCE price index increased 0.3% in August from the previous month, following a revised 0.1% increase in July.

Economists had forecast a 0.4% monthly increase. July’s figure had previously been reported as a 0.2% rise.

The futures advance followed a mixed trading session on Tuesday that ultimately left the Dow, Nasdaq and S&P 500 modestly lower.

Headline and Core PCE Readings Below Forecasts

On a year-on-year basis, the PCE price index increased 3.4% in August, matching the revised July rate.

The figure compared with expectations for the annual rate to remain unchanged from the previously reported July reading of 3.7%.

Core PCE, which excludes food and energy prices, increased 0.2% month on month in August after a revised 0.1% rise in July.

Economists had forecast a 0.3% monthly increase, compared with the 0.2% rise originally reported for July.

Annual core PCE inflation was 3.0% in August, unchanged from July’s revised reading. Economists had expected the annual rate to remain at the previously reported July level of 3.3%.

Private-Sector Employment Grows More Than Expected

A separate report from ADP showed that U.S. private-sector employers added 90,000 jobs in September.

That exceeded the consensus forecast for an increase of 70,000.

August’s employment increase was revised down to 36,000 jobs from the 38,000 initially reported.

The ADP figures indicated stronger-than-expected private employment growth in September, while the PCE report showed monthly headline and core inflation below forecasts.

Dow, Nasdaq and S&P 500 End Tuesday Lower

The major U.S. indices moved between gains and losses throughout Tuesday’s session as investors avoided making larger moves ahead of the latest inflation figures.

The Dow Jones Industrial Average closed down 131.59 points, or 0.3%, at 51,349.92.

The Nasdaq Composite declined 22.84 points, or 0.1%, to 26,797.54, while the S&P 500 lost 12.85 points, or 0.2%, to finish at 6,760.84.

The declines followed a volatile session in crude oil and a further increase in Treasury yields.

U.S. Crude Drops 3.5% After Earlier Rally

U.S. crude oil futures initially climbed as much as 2.3% on Tuesday before reversing those gains and falling 3.5%.

Treasury yields nevertheless moved higher during the trading session, continuing their recent upward trend despite the decline in crude prices.

Oil service stocks followed crude prices lower, with the Philadelphia Oil Service Index declining 2.4%.

The move left the index at its lowest closing level in two months.

Consumer Confidence Falls to 81.9

The Conference Board also reported a larger-than-expected decline in U.S. consumer confidence during September.

Its consumer confidence index dropped to 81.9 from a downwardly revised August reading of 88.6.

Economists had forecast an increase to 90.0 from the previously reported August level of 89.4.

The report added another economic indicator for investors to assess ahead of Wednesday’s PCE inflation figures.

Semiconductor Shares Gain While Telecom Stocks Decline

Most major market sectors recorded relatively limited movements during Tuesday’s session.

Telecommunications stocks were among the weaker areas, with the NYSE Arca North American Telecom Index falling 1.3%.

Semiconductor shares advanced, pushing the Philadelphia Semiconductor Index 1.3% higher.

Wednesday’s futures gains followed the release of the latest inflation figures, with both headline and core monthly PCE readings below economists’ expectations and ADP private employment growth exceeding forecasts.

European stocks moved into negative territory on Wednesday after giving up earlier gains, as oil prices rebounded and investors assessed economic data from Germany, France and the UK.

Brent crude futures for December delivery rose about 1.8% to $97.90 a barrel. Oil markets remained volatile amid continued uncertainty over U.S.-Iran negotiations and the reopening of the Strait of Hormuz.

The UK’s FTSE 100 outperformed major continental indices following stronger-than-expected GDP data, rising 0.2%. Germany’s DAX declined 0.2%, while France’s CAC 40 fell 0.4%.

German Stocks Mixed as Unemployment Rises

In Frankfurt, Commerzbank fell about 2.7%. Vonovia, Siemens Healthineers, Allianz, SAP and Siemens declined between 0.8% and 1.6%.

Zalando, Porsche Automobil Holding and BMW gained between 3.3% and 3.5%. Volkswagen rose nearly 2%, while Fresenius, MTU Aero Engines, Mercedes-Benz, RWE and BASF advanced between 1% and 1.6%.

Data from Germany’s Federal Employment Agency showed the number of unemployed people increased by 12,000 in September from August, compared with an expected rise of 1,000. Unemployment had increased by 5,000 in August.

The unemployment rate remained unchanged at 6.4% in September, in line with expectations.

Separate data from Destatis showed the adjusted unemployment rate remained at 4% in August. The number of unemployed people stood at 1.76 million, an increase of 9,000 from July, according to the labour force survey.

The unadjusted unemployment rate increased to 4.3% in August from 3.9% a year earlier.

German Retail Sales Recover in August

German retail sales increased 1.3% month on month in August, reversing a 3.2% decline in July, according to Destatis.

The increase was below the 1.6% growth forecast by economists.

On an annual basis, retail sales declined 0.4%, compared with a 2.2% decrease in July.

The economic figures accompanied a mixed session for German equities, with the DAX trading 0.2% lower.

French Inflation Accelerates to 3%

In Paris, EssilorLuxottica gained 2%, Stellantis advanced 1.6% and Pernod Ricard rose 1.5%. Renault added 1.1%, while Hermes International, Kering, Air Liquide and Sanofi recorded moderate gains.

Teleperformance fell about 6%. TotalEnergies, Publicis Groupe, AXA, BNP Paribas, Bouygues, Carrefour, Vinci, Unibail Rodamco, Dassault Systemes, Eurofins Scientific, Engie and Edenred declined between 1% and 2.5%.

Preliminary data from French statistical office INSEE showed consumer price inflation accelerated to 3% in September from 2.4% in August, exceeding economists’ forecast of 2.8%. The 3% rate was last recorded in February 2024.

EU-harmonised inflation increased to 3.4% from 2.6% in August, above the expected rate of 3%.

On a monthly basis, French consumer prices declined 0.3% after increasing 0.7% in August. Economists had forecast a 0.5% decline.

The harmonised index of consumer prices fell 0.4% month on month, reversing the previous month’s 0.7% increase and compared with expectations for a 0.5% decline.

French Producer Price Inflation Rises

Separate INSEE data showed producer price inflation in France’s domestic market increased to 4.8% from 3.5% in July.

On a monthly basis, producer prices rose 1%, following an increase of 1.3% in July.

The inflation figures came as the CAC 40 traded 0.4% lower during Wednesday’s session.

FTSE 100 Rises After UK GDP Revision

UK equities outperformed their German and French counterparts, with the FTSE 100 gaining 0.2%.

Antofagasta, Reckitt Benckiser, SSE, National Grid, Marks & Spencer, Severn Trent and United Utilities advanced between 2% and 3%.

Kingfisher, British Land, JD Sports Fashion, Croda International, ICG, Anglo American Plc, Spirax Group and Rio Tinto also recorded notable gains.

The Sage Group, Ithaca Energy, Relx, Experian, BT Group, BP, Shell, LSEG and Rolls-Royce Holdings declined between 0.9% and 2%.

Revised figures from the Office for National Statistics showed the UK economy expanded 0.5% quarter on quarter in the second quarter, above the previous estimate of 0.4%. GDP had increased 0.6% in the first quarter.

Services output grew 0.6% during the second quarter, while construction increased 0.8%. Production declined 0.1%.

On the expenditure side, real household final consumption expenditure increased 0.3%, while government spending declined 0.5%.

Oil Rebounds Amid Strait of Hormuz Uncertainty

Brent crude futures for December delivery climbed approximately 1.8% to $97.90 a barrel.

Oil prices remained sensitive to developments surrounding U.S.-Iran negotiations and the prospect of reopening the Strait of Hormuz.

The rebound in crude prices accompanied declines in Germany’s DAX and France’s CAC 40, while stronger revised UK GDP data coincided with a modest gain for the FTSE 100.

U.S. equity futures traded higher on Wednesday as markets prepared for August inflation figures closely followed by the Federal Reserve, while investors also monitored oil supply developments, reports that the White House is considering restrictions on diesel exports and new economic readings from China.

The personal consumption expenditures price index is expected to show that U.S. inflation remained elevated in August, giving markets another indication of the price environment ahead of the Federal Reserve’s October policy meeting.

In energy markets, Brent crude steadied following Tuesday’s decline as indications of recovering Saudi Arabian crude flows offset some of the concerns surrounding continuing disruptions to Middle Eastern supplies.

Dow, S&P 500 and Nasdaq Futures Gain

At 03:18 ET, futures linked to the Dow Jones were 247 points higher, representing a gain of 0.5%. S&P 500 futures rose 21 points, or 0.3%, while Nasdaq 100 futures added 52 points, or 0.2%.

Wall Street’s main indices had finished modestly lower in the previous session as investors assessed elevated U.S. government bond yields. The benchmark 10-year Treasury yield reached its highest level since 2007, while the 30-year yield moved to levels last recorded in 2002.

Comments from New York Federal Reserve President John Williams also remained in focus. Williams said the central bank might need to tighten monetary policy again, although he said there was “no need for urgency” following the Fed’s interest rate increase earlier in September.

Vital Knowledge analysts said some market participants interpreted the comments as suggesting that policymakers could leave interest rates unchanged when the Federal Reserve meets in October.

Investor interest in artificial intelligence provided additional support to equities, while a small number of positive earnings releases from consumer-related businesses also contributed to sentiment, according to Vital Knowledge.

Semiconductor company Micron (NASDAQ:MU) is scheduled to report quarterly results after Wednesday’s closing bell.

The results could provide investors with further indications about memory-chip demand, including demand associated with the expansion of artificial intelligence infrastructure.

August PCE Figures Could Provide Further Fed Policy Signals

Markets are awaiting the latest personal consumption expenditures price index as they assess the outlook for U.S. inflation and the Federal Reserve’s next monetary policy decisions.

The PCE index is an inflation measure closely monitored by Federal Reserve policymakers.

Core PCE, which removes food and energy prices, is forecast to increase 0.3% month on month in August, accelerating from 0.2% in the previous month.

Headline PCE is expected to rise 0.4% month on month, compared with a previous increase of 0.2%.

On a year-on-year basis, core PCE is forecast at 3.3%, while headline inflation is expected to stand at 3.7%.

Both annual rates would be unchanged from July and would remain above the Federal Reserve’s 2% inflation target.

The release will provide markets with additional data as investors assess whether the Federal Reserve could make another change to interest rates at its October meeting.

Oil Prices Steady as Saudi Crude Flows Recover

Crude prices were little changed on Wednesday after falling sharply a day earlier, with indications of recovering Middle Eastern exports offsetting some of the continuing concerns surrounding regional supply disruptions.

At 03:04 ET, November Brent crude futures gained 0.3% to $102.87 per barrel. U.S. West Texas Intermediate futures were down 0.2% at $89.24 per barrel.

Brent had settled 2.6% lower during Tuesday’s session, while WTI fell 3.5%.

Oil markets were assessing indications that Saudi Arabia had resumed crude loadings from the Red Sea port of Yanbu after restarting a major east-west pipeline crossing the kingdom.

The recovery in Saudi crude movements has reduced some of the immediate supply concerns related to the war involving Iran, although regional energy shipments remain under scrutiny.

White House Reportedly Discusses Possible Diesel Export Ban

President Donald Trump is considering several measures intended to address higher U.S. fuel prices, including a possible ban on diesel exports, according to a Financial Times report cited in the supplied information.

U.S. administration officials have discussed restrictions on international diesel sales and briefed allies, including Britain, about the possibility of supply disruptions, the newspaper reported, citing people familiar with the discussions.

A White House official cited by the Financial Times said the president was examining options to reduce fuel prices but had not reached a decision on exports.

The discussions have resulted in differing positions among Republican lawmakers from agricultural states and oil companies.

Agricultural organisations have warned about the potential effects of elevated diesel prices on farmers and industry ahead of the U.S. midterm elections.

U.S. diesel prices reached $6.53 per gallon last week, more than 70% above their pre-war level, according to the Financial Times report.

China’s Manufacturing PMI Reaches Five-Month High

China’s manufacturing activity expanded at its fastest rate in five months during September, according to a private-sector survey, while separate figures also indicated an improvement in factory and services activity.

The RatingDog Manufacturing purchasing managers’ index rose to 52.1 from 51.5 in August, exceeding the market expectation of 51.7.

The September reading was the highest since April and marked a tenth consecutive month above the 50 threshold separating expansion from contraction.

A separate services PMI increased to 51.6 in September from 51.4 previously.

The services reading also exceeded expectations, which had called for 51.3.

FTSE 100 rises as UK growth beats forecasts, while Greggs reports higher Q3 sales, Goodwin updates investors and Brent crude falls.

Market Overview

The FTSE 100 opened 0.69 per cent higher at 10,709.87, supported by stronger-than-expected UK economic growth and gains among mining shares. In Europe, the Euronext 100 rose 0.43 per cent and Germany’s DAX gained 0.59 per cent as regional equities advanced amid supportive signals for the technology sector. On Wall Street, the Nasdaq closed lower at 26,797.54, while the S&P 500 declined to 7,670.84.

Commodity trading was mixed, with copper and gold higher, Brent crude lower and natural gas broadly unchanged. Oil markets remained focused on recovering Middle East exports and disruption around the Strait of Hormuz. Against sterling, the US dollar, Swiss franc, euro and Australian dollar weakened, while the Japanese yen strengthened. Bitcoin also declined against sterling.

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Market Numbers

FTSE 100: Higher (+0.69%), 10,709.87
Euronext 100: Higher (+0.43%), 1,905.80
DAX: Higher (+0.59%), 25,547.80
NASDAQ: Lower, 26,797.54
S&P 500: Lower, 7,670.84

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In the Headlines

Q3 sales growth – Greggs (LSE:GRG)
Greggs reported third-quarter total sales growth of 7.7 per cent, with like-for-like sales in company-managed shops up 3.4 per cent. The food-on-the-go retailer also proposed a manufacturing restructuring that could affect around 740 roles as it seeks to consolidate production and reduce costs.

Higher refractory profits – Goodwin (LSE:GDWN)
Goodwin reported higher profits from its refractory operations as the engineering group continued work towards the disposal of a substantial part of its Mechanical Engineering division. The transaction would leave the group focused on its Refractory Engineering and Technological divisions following completion.

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Currencies (vs GBP)

USD: Lower (-0.28%), $1.3267
CHF: Lower (-0.17%), Fr.1.1056
EUR: Lower (-0.18%), €1.1687
JPY: Higher (+0.08%), ¥208.082
AUD: Lower (-0.46%), $1.9018
Bitcoin (BTC/GBP): Lower, £62,837.88

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Commodities

Copper: Higher
Gold: Higher
Brent Crude: Lower
Natural Gas: Broadly unchanged

European equity markets moved higher on Wednesday, with major indices approaching one-week highs as investors awaited a series of European and U.S. economic releases and assessed developments affecting the technology sector.

The pan-European STOXX 600 rose 0.7%, following two sessions of limited movement. Germany’s DAX and the UK’s FTSE 100 also gained 0.7%.

Technology and semiconductor equipment stocks contributed to the gains after U.S. President Donald Trump said leading technology executives had agreed to establish voluntary safety standards for artificial intelligence development.

Technology Sector Responds to U.S. AI Policy Signals

Trump also reiterated his support for expanding data-centre infrastructure in the United States.

The comments provided investors with further information on the U.S. administration’s approach to AI infrastructure and followed recent pauses in model training at OpenAI.

Technology hardware suppliers and energy providers are among the sectors with exposure to investment in data-centre capacity as demand for computing infrastructure increases.

European Inflation and Employment Data in Focus

Investors were also preparing for a series of economic releases across Europe.

The calendar included German retail sales figures for August, German employment data, preliminary French inflation figures and Germany’s September consumer price index.

European Central Bank official Frank Elderson was also scheduled to speak later in the session, with investors monitoring his comments for indications regarding the eurozone economic outlook.

U.S. PCE Inflation Data Awaited

In the United States, attention was focused on the August Personal Consumption Expenditures price index, an inflation measure monitored by the Federal Reserve.

Expectations cited in the supplied information indicated that underlying price pressures were forecast to remain unchanged from the previous month.

U.S. Treasury yields remained elevated ahead of the release, increasing the market’s focus on inflation data and their potential implications for monetary policy expectations.

STOXX 600 Heads for Monthly Decline

Despite Wednesday’s gains, the STOXX 600 was on course for a decline of nearly 2% in September, which would represent its first monthly decrease in six months.

European equities faced higher sovereign bond yields, elevated energy costs and uncertainty surrounding investment and development trends in the artificial intelligence sector during the month.

These factors coincided with a pullback in the broader European equity market following gains during the summer.

UK stocks moved higher on Wednesday after data showed the British economy grew faster than expected during the second quarter, while mining companies were among the leading gainers.

The FTSE 100 rose 0.70% as of 03:18 ET (07:18 GMT). Elsewhere in Europe, Germany’s DAX gained 0.71% and France’s CAC 40 increased 0.32%.

Sterling rose 0.31% against the US dollar to $1.3271.

UK Economy Grows 0.5% in Second Quarter

UK gross domestic product increased 0.5% between April and June, exceeding expectations for growth of 0.4%. The economy had expanded 0.6% during the first quarter.

Net trade provided the largest contribution to expenditure growth, with export volumes rising 2.8%. Services output increased 0.6%, while production declined 0.1%.

Household spending rose 0.3%, while government borrowing increased to 5.2% of GDP from 4.2%.

Among other European economies, Germany recorded second-quarter growth of 0.3%, while France was unchanged.

Middle East Developments Remain in Focus

Developments involving the US and Iran remained in focus after US President Donald Trump said the war with Iran would end “very soon”, without providing further details. He also repeated his position that Iran would not obtain a nuclear weapon.

Iran’s Revolutionary Guards issued an open letter calling on US voters to change the administration ahead of the midterm elections.

University of Tehran researcher Mohammad Eslami said the US blockade of the Strait of Hormuz was reducing Iran’s oil revenue.

Trump also denied reports that the US could ease sanctions on Iran. Iranian President Masoud Pezeshkian said Washington and Israel were attempting to create internal divisions in Iran after failing to achieve their objectives militarily.

In the UK, counterterrorism police said no explosives had been found in vans near RAF Fairford following the arrest of five people over a suspected plot. Petrol was found in the vehicles, and the five people were subsequently released on bail.

Mining Shares Lead FTSE 100 Gains

Mining companies were among the strongest performers on the FTSE 100.

Rio Tinto (LSE:RIO) gained 2.1%, while Antofagasta (LSE:ANTO) rose 2.7% and Fresnillo (LSE:FRES) increased 1.4%.

Anglo American (LSE:AAL) advanced 1.8%, while Glencore (LSE:GLEN) gained 1.0%. InterContinental Hotels Group (LSE:IHG) rose 2.3%.

Gold Rises as Oil Prices Decline

Brent crude futures fell 0.88% to $95.31 a barrel, while US West Texas Intermediate crude declined 0.69% to $88.75.

Gold futures increased 1.14% to $4,227.09 an ounce, while spot gold rose 0.32% to $4,195.15.

UK Corporate Updates

Saga (LSE:SAGA) reported that underlying profit before tax nearly doubled during the first half of 2026 and raised its profit and cash-flow outlook.

Greggs (LSE:GRG) raised its 2026 outlook following higher summer sales and proposed a restructuring of its manufacturing operations that could result in four site closures and around 740 redundancies.

Pinewood Technologies (LSE:PINE) reported a wider first-half loss as spending on its North American expansion and acquisition-related costs increased. The company maintained its outlook for the 2026 financial year.