Source: Sharecast
By 0723 BST, futures were pointing to a 0.35% gain for the FTSE 100, up from Tuesday's closing price of 9,023.81. The index has settled at record highs for the past two sessions after four straight days of gains.
President Donald Trump announced overnight in a post on Truth Social that he had agreed a "massive" trade deal with Tokyo that will see Japanese imports into the US slapped with a 15% tariff – not as steep as the 25% rate he threatened earlier this month.
The news sparked a big rally on Asian stock markets, with Japan's Nikkei 225 in particular up 3.7% as carmakers surged.
The deal comes as EU members rally to hit back against its 30% US tariffs with retaliatory measures, with reports suggesting that the bloc may use a so-called anti-coercion instrument, which includes placing restrictions on US firms involved in EU public procurement, as well as enforcing limitations on IP rights.
Wednesday will be another quiet day for economic data, with the MBA mortgage applications numbers and existing home sales figures in the States being the only major releases.
In UK equity news, pub landlord JD Wetherspoon said on Wednesday that like-for-like sales increased by 5.1% year-on-year in the 12 weeks ended 20 July, as sales volumes recently overtook pre-pandemic levels. Year-to-date like-for-like sales also increased by 5.1%.
Meanwhile, publishing and exhibitions group Informa said that strong forward visibility had led it to upgrade FY guidance. Informa said it delivered reported revenues had grown by more than 20%, while operating margins increased from 27.5% to 28.4%
