The FTSE 100 was up 14.02 points at 7,375.65 while the broader FTSE 250 firmed 27.18 points to 19,174.23

FTSE 100 opened slightly higher on Wednesday despite further falls in the US overnight and mixed showings by Asian markets.

At 8.05am the FTSE 100 was up 14.02 points at 7,375.65 while the broader FTSE 250 firmed 27.18 points to 19,174.23.

US markets fell following better than expected economic data with improvements in consumer confidence and as the JOLTS data showed that the job market remained strong.

Michael Hewson chief market analyst at CMC Markets UK said: Yesterday’s improvement in US economic data appears to have reinforced the expectation that the resilience of the US economy is likely to mean that the Fed will be a lot less cautious, when it comes to further tightening monetary policy when it meets next on 21st September, when it could well go for its third successive 75bps rate hike, as it looks to drive inflation back down again.

In Europe, EU consumer price inflation figures are due which are expected to rise to a new record high of 9% and Hewson said ‘another record high for EU CPI will merely serve to embolden the hawks on the governing council who have become more vocal in recent weeks.’

On a quiet day for corporate news, Cake Box PLC, warned that full year profits would be significantly below current market forecasts.

The specialist retailer of fresh cream cakes said inflationary cost pressures and weaker than anticipated sales at the franchise level during July and August has resulted in franchisee like for like sales declining 2.8% in the first half to date.

The group said the summer performance had been exacerbated by the recent heatwave which has impacted store footfall.