FTSE 100 down 0.2% ahead of US inflation report

The FTSE 100 was down 12.78 points, or 0.2%, at 7,475.43 and the FTSE 250 index was down 28.62 points, or 0.1%, at 19,883.78

Market focus in London early Wednesday was on individual stocks, especially insurers, as earnings season continues, with broader direction on hold ahead of a US inflation report due just after midday.

The FTSE 100 was down 12.78 points, or 0.2%, at 7,475.43 early Wednesday. The FTSE 250 index was down 28.62 points, or 0.1%, at 19,883.78. The AIM All-Share index was down 3.47 points, or 0.4%, at 911.28.

The Cboe UK 100 index was down 0.2% at 746.06. The Cboe 250 was down 0.2% at 17,243.59. The Cboe Small Companies was down 0.1% at 14,278.55.

In Paris, the CAC 40 stock index was down 0.1%, while in Frankfurt, the DAX 40 was up 0.1%.

Consumer prices in Germany rose at a slower pace in July, the Federal Statistical Office said, continuing a trend seen since May, but inflation remained elevated. Annually, consumer price inflation was 7.5% in July, confirming flash estimates, slowing slightly from 7.6% in June and 7.9% in May.

On Tuesday, the Dow Jones Industrial Average closed down 0.2%, the S&P 500 index down 0.4%, and the Nasdaq Composite down 1.2%.

In New York, all eyes will be on the inflation print due at 12:30 pm GMT.

Consensus, according to FXStreet, expects the US annual consumer price inflation rate to have eased to 8.7% in July from 9.1% in June. The core rate, however, is seen ticking up to 6.1% from 5.9%.

With the Fed's focus squarely on inflation, there's no doubt that this is the big one every month nowadays, even if the Fed does pay lip service to the personal consumption expenditure deflators as their preferred inflation gauges, commented Marshall Gittler at financial firm BDSwiss.

He also noted that the Cleveland Fed's Nowcast forecast is slightly above market consensus at 8.8%. The market may be braced for a higher-than-expected figure and so the surprise from a lower-than-expected figure would be bigger than the surprise from a higher-than-expected figure, Gittler said.