Sharecast - The FTSE 100 was called to open around 20 points lower at 7,467.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Yesterday was about digesting Tuesday’s softer-than-expected US CPI data, feeling relieved that the US Senate passed a stopgap spending bill to avert a government shutdown and welcoming a softer-than-expected producer price inflation, and a softer-than-expected decline in US retail sales -which came to support the idea that, yes, the US economy is probably slowing but it is slowing slowly, while inflation is easing at a satisfactory pace.
"The sweet mix of the recent economic data backs the idea that the Federal Reserve Fed could achieve what they call a ‘soft landing’ following an aggressive monetary policy tightening - and more importantly stop hiking the interest rates.
"At this point, investors are 100% sure that the Fed won’t hike rates in December. They are 100% sure that the Fed won’t hike rates in January. There is more than a quarter of a chance for a rate cut to be announced by March. And the pricing suggests that there is a higher chance for a rate cut in the Fed’s May meeting, than not."
On the corporate front, there was another avalanche of releases, with Aviva (LON:AV), Burberry (LON:BRBY), Halma (LON:HLMA), Melrose (LON:MRON), Crest Nicholson (LON:CRST) and Premier Foods (LON:PFD) among those reporting.
Burberry warned that the slowdown in luxury demand is having an impact on current trading and could affect full-year sales.
The company said that while it is confident in its medium and long-term targets, it hasn't been immune to the wider challenging market conditions that have already hit a number of major players, including Kering (LON:0IIH), Hermès and LVMH (EPA:LVMH).
"If the weaker demand continues, we are unlikely to achieve our previously stated revenue guidance for FY24," it said in its interim results.
Current guidance points to low double-digit growth in full-year revenues for the year ending March 2024. "In this context, adjusted operating profit would be towards the lower end of the current consensus range (£552m-£668m),” it said.
Halma (LON:HLMA) reported record first-half profit and revenue and said it was on track to deliver full-year 2024 adjusted pre-tax profit in line with analyst expectations.
In the six months to the end of September, revenue jumped 9% to £950.5m and adjusted pre-tax profit was up 3% at £177.5m.