The FTSE 100 dipped on Wednesday as UK inflation came in a smidge higher than expected to match the multi-decade highs seen in July.
Food prices were the major contributor to the inflationary surge, which will only ramp up the pressure on the Bank of England to maintain a hard line on interest rates ahead of its next meeting in November.
AJ Bell investment director Russ Mould said: “Third quarter earnings season from the US may help to set the mood and so far, companies seem to be performing well, albeit against some pretty modest expectations.
“For now, corporate America seems to be standing up well to the inflation storm, but a lot will depend on the big tech companies reporting next week – with the destiny of the markets in the hands of the likes of Apple, Alphabet and Amazon.”
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