3rd Feb 2026 12:16
(Alliance News) - Stock prices in London were lower at midday on Tuesday, as an earlier rally in the FTSE 100, which sent it to a new intraday record, faded while the price of gold rebounded after recent falls.
The FTSE 100 index was down 41.90 points, 0.4%, at 10,299.66. The FTSE 250 was down 15.00 points, 0.1%, at 23,411.05, and the AIM all-share was up 6.03 points, 0.7%, at 820.37.
Earlier on Tuesday, the FTSE 100 index reached a new intraday record of 10,373.28 points.
The Cboe UK 100 was down 0.3% at 1,028.59, the Cboe UK 250 was up 0.2% at 20,688.60, and the Cboe small companies was 0.4% higher at 18,765.43.
In European equities on Tuesday, the CAC 40 in Paris was down 0.1%, while the DAX 40 in Frankfurt was up 0.3%.
Sterling was at USD1.3658 at midday on Tuesday, up from USD1.3651 at the London equities close on Monday. The euro was lower at USD1.1790 from USD1.1804. Against the yen, the dollar was higher at JPY155.90 versus JPY155.52.
"The sharp sell-off in gold over the past few days has encouraged investors to buy on the dip, scooping up the precious metal in their droves and making it sparkle again," said AJ Bell analyst Russ Mould.
Gold was higher at USD4,933.40 an ounce early on Tuesday from USD4,696.11 late Monday. The price of silver rose 10%.
"Gold has delivered such strong rewards to investors over the past year that many people will have treated the recent sell-off as a New Year's sale, a chance to grab more metal at a discounted price," Mould said.
As a result, shares in miners were higher as metal prices recovered. Endeavour Mining led the FTSE 100 and gained 5.5%, Anglo American rose 4.2%, Antofagasta climbed 3.2%, and Fresnillo was up 3.0%.
AJ Bell's Mould said: "The FTSE 100 was driven by a risk-on mentality as miners led the index higher, banishing the commodity blues that depressed the start of the trading week."
By midday, the rally in the FTSE 100 had faltered, falling away from the intraday record.
Mould added: "A trade deal between the US and India helped the market mood, raising hopes for other countries still in the queue to find a resolution to tariff pressures bestowed upon them by the Trump administration. India has been a rich source of returns for investors over the past few decades, but Trump's tariff regime stalled momentum in the Sensex index. Investors will now be wondering if the trade deal effectively removes the shackles on the market and breathes new life into it, rather than simply resulting in a short-term relief rally."
Stocks in New York were called to open mixed. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index 0.1% higher, and the Nasdaq Composite up 0.4%.
The yield on the US 10-year Treasury was quoted at 4.29% on Tuesday morning, widened slightly from 4.28% at Monday's close. The yield on the US 30-year Treasury widened to 4.92% from 4.90%.
In London, shares in JD Sports Fashion were down 6.0%.
Deutsche Bank Research cuts its price target for the retailer to 85 pence from 95p, with a 'hold' rating.
AstraZeneca shares were 1.8% lower after it reported mixed news with progress for its cancer treatment Datroway, while US regulatory authorities requested more information on autoimmune disease drug Saphnelo before progressing its application.
The Cambridge-based pharmaceuticals company said Datroway has been granted priority review in the US as a first-line treatment for patients with metastatic triple-negative breast cancer who are not candidates for immunotherapy.
In addition, AstraZeneca said the US Food & Drug Administration issued a complete response letter regarding the biologics license application for Saphnelo for subcutaneous administration in adult patients with systemic lupus erythematosus.
The FDA sends complete response letters if it determines that it will not approve the application in its current form.
AstraZeneca said it provided the information requested in the letter and is committed to working with the FDA to progress the application as soon as possible.
It said a decision from the FDA is expected in the first half of 2026.
On the FTSE 250 index, AG Barr rose 6.3% as it said its annual trading was in line with forecasts, and announced the acquisitions of the Fentimans and Frobishers Juices brands.
The Cumbernauld, Scotland-based soft drinks manufacturing company said revenue for the year ended January 31 increased by around 4% to about GBP437 million from GBP420 million the year before.
It also expects to report an adjusted operating margin of about 14.7%, up on-year from 13.6% and "contributing to double-digit profit growth". AG Barr said this is driven by the benefits of ongoing efficiency initiatives and supply chain investment.
AG Barr announced its acquisitions of soft drinks and mixers brand Fentimans for around GBP38 million, and fruit juices and soft drinks brand Frobishers for GBP13 million.
"Both brands operate in the attractive Adult Soft Drinks market, which is benefitting from the consumer trend of reduced alcohol consumption," the company said.
WPP fell the most on the FTSE 250 index and was down 6.2% after industry peer Publicis guided for a slowdown in the year ahead.
Looking ahead, Publicis aims to deliver 4% to 5% organic sales growth in 2026, slowing from 5.6% in 2025.
It expects operating margin at slightly above 18.2%, which was the level reported in 2025, while maintaining a high level of investment.
In response, Publicis shares were 8.7% lower in Paris.
On London's AIM market, shares in Xtract Resources jumped 24%.
The Australia and Zambia-focused miner agreed to enter a new joint venture for development of copper mining operations at the Zambia mining licence.
It struck the joint venture with the holder of the licence, Oval Mining, and Cooperlemon Consultancy.
"We are pleased to have concluded this small scale copper mining agreement with Oval with respect to the Mining licence. With the continued partnership of Cooperlemon, the parties will be seeking to exploit the high grade material identified in the breccia pipe and surrounding areas," said Executive Chair Colin Bird.
Among small caps, shares in Mila Resources were down 27%.
The post-discovery gold exploration firm said drilling at the Yarrol gold project in Queensland, Australia confirmed continuity of the gold-bearing structure but did not deliver the anticipated grades.
The firm added that the depth extensions warrant further work over the medium term, but the most compelling and capital efficient near-term opportunity is in testing shallow targets across the Yarrol, Monal and Mt Steadman licences.
"The grades were lower than anticipated albeit they confirmed that gold structures extend well below surface, with grades of 5 g/t still present at depth; an important validation of the system's scale," said Managing Director Mark Stephenson.
Brent oil was trading higher at USD66.53 a barrel from USD66.03 on Monday.
There are no events to come on Tuesday's global economic calendar.
By Michael Hennessey, Alliance News reporter
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Endeavour MiningFresnilloAntofagastaAnglo AmericanJD SportsAstrazenecaBarr (A.G.)WPPXtractMila Resources