| London traders had a sunny disposition early on Wednesday taking their cue from a turn in the weather and upbeat sessions in the US and Asia as investors eyed the release of key inflation data and sifted through a deluge of corporate news. At 0830 BST, the FTSE 100 was up 0.3% to 7,244.53, while the pound was up 0.1% versus the euro at 1.1559 and flat against the dollar at 1.4282. Analyst Jasper Lawler at London Capital Group said: "The calmer sentiment in the market as investor concerns fade over military action in Syria and a potential US-Sino trade war, is being played out in the CBOE volatility index (VIX), also known as the fear gauge. The VIX which dropped over 8.5% in the previous session is trading below 15 for the first time since mid-March. This points to a calmer picture on the markets after a particularly rough past few months. "With geopolitical tensions easing, at least for the time being, US earning season has filled the void, impressing investors, even though the bar has been set high." On the data front, the UK consumer price index, retail price index and producer price index are all due to be published by the Office for National Statistics at 0930 BST. Today’s big UK data is around the March CPI numbers, which are expected to come in at 2.7%, unchanged from February, though some economists see a fall to 2.6%. Core prices are also expected to fall back as well, from 2.5% to 2.4%. "All eyes on UK CPI today, to see whether wages are indeed growing faster than prices for the first time in almost a year," said Mike van Dulken at Accendo Markets. "This may lessen the squeeze on the consumers, but with inflation still well above target, it is unlikely to deter the Bank of England from hiking interest rates in May." In corporate news, Hammerson rallied after saying it has withdrawn its recommendation for its proposed takeover of Intu Properties, blaming problems in the UK retail market and opposition among some shareholders for its change of heart. Intu shares slumped. CMC Markets analyst Michael Hewson said: "Retail businesses are already struggling with higher business rates as well as declining footfall so today’s news that Hammerson is pulling out of its £3.5bn bid for its rival Intu Properties is quite a sensible move, particularly since some bigger shareholders were expressing disquiet about the deal." "There is also the fact that with retail profit warnings at seven year highs any deal is likely to be extremely high risk. Why double up on retail property when stores are closing and rental income is under threat. It would be akin to doubling up on a losing position, and as we know from historical precedent that rarely prompts a positive outcome." Melrose Industries was in the black as it urged all remaining GKN shareholders to accept its takeover offer before midday on Wednesday as it will become unconditional in all respects at 0800 BST on Thursday. Mediclinic International advanced after saying it expects profits for the year to be marginally ahead of expectations, thanks to a "significant" second half improvement in its Middle East hospitals. Rio Tinto, Polymetal and Hochschild were all on the front foot following production reports, while Segro gained after hailing a "strong" start to 2018. Distribution and outsourcing group Bunzl was higher as it posted a 7% jump in first-quarter revenue and announced the completion of in the US and the Netherlands last month. Bodycote gained as it signed a 15-year contract with Rolls-Royce's civil aerospace business that is expected to be worth more than £160m in incremental revenues, while Meggitt nudged higher after saying it has secured a multi-million dollar contract with Korea Aerospace Industries. Countryside Properties was up as the housebuilder posted a 15% increase in first-half total completions, while Moneysupermarket edged higher as the price comparison website reported a 4% jump in first-quarter revenue and said it remains confident of meeting current market expectations. Tritax Big Box fell as it announced a placing to fund its acquisition pipeline, while BT Group slipped as it announced that it would bring together its enterprise businesses in the UK and Republic of Ireland to accelerate its transformation, simplify its operating model and strengthen accountabilities. Jupiter Fund Management retreated after it reported a drop in assets under management in the three months to the end of March 2018, while CYBG was under pressure as it said it will said aside another £350m for legacy claims over mis-sold payment protection insurance. In broker note action, Rio Tinto was upgraded to 'buy' at HSBC, while KAZ Minerals was cut to 'reduce' and Whitbread was downgraded to 'hold'. The AA was lifted to 'neutral' at Credit Suisse. | 
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