21st Jan 2026 12:21
(Alliance News) - Stock prices in London were mostly lower at midday on Wednesday, as the FTSE 100 resumed its decline as investors continued to mull developments at Davos amid strained relations between the US and its allies.
US President Donald Trump has landed in Switzerland following hours of delay after a minor electrical issue aboard Air Force One forced a return to Washington to switch aircraft.
Trump is set to address the World Economic Forum in the Swiss Alps, where his ambitions to wrest control of Greenland from Nato ally Denmark could tear relations with European allies and overshadow his original plan to use his appearance at the gathering of global elites to address affordability issues in the US.
The FTSE 100 index was down 20.50 points, 0.2%, at 10,106.28. The FTSE 250 was down 59.09 points, 0.3%, at 22,898.78, and the AIM All-Share was up 3.41 points, 0.4%, at 804.55.
The Cboe UK 100 was down 0.2% at 1,010.88, the Cboe UK 250 was 0.4% lower at 20,048.99, and the Cboe Small Companies was down slightly at 17,794.63.
In European equities on Wednesday, the CAC 40 in Paris was 0.4% lower, while the DAX 40 in Frankfurt fell 1.0%.
Sterling was at USD1.3410 at midday on Wednesday, down from USD1.3462 at the London equities close on Tuesday. The euro was lower at USD1.1716 from USD1.1733. Against the yen, the dollar was lower at JPY157.86 versus JPY157.95.
"The FTSE 100 held up in early trading on Wednesday despite a rebound in UK inflation and continued uncertainty over Greenland," said AJ Bell analyst Dan Coatsworth.
After holding steady on Wednesday morning, the FTSE 100 had resumed its decline by midday.
UK inflation rose more than expected in December, according to figures published by the Office for National Statistics.
The consumer prices index including owner occupiers' housing costs, or CPIH, rose by 3.6% in the 12 months to December, up from 3.5% in November.
On a month-on-month basis, CPIH rose by 0.4% in December, compared with a rise of 0.3% in the same month last year.
Headline consumer prices index inflation also accelerated. CPI rose by 3.4% year-on-year in December, up from 3.2% in November. The figure was above the FXStreet-cited consensus of 3.3%.
Monthly CPI rose by 0.4% in December, compared with a 0.3% rise a year earlier. This was in line with the consensus.
Turning to geopolitical affairs, AJ Bell's Coatsworth said: "The hope will be that some form of compromise can be found as Donald Trump meets with European leaders and speaks at the World Economic Forum in Davos."
The UK will not be pushed around by Donald Trump's tariff threats, Chancellor Rachel Reeves said as she defended Keir Starmer's attempts to cool tensions over Greenland, PA reported.
Speaking in Davos, the chancellor said the UK had an economic plan which would "get us through challenging times" and the trade deal with the US would not be "undone".
Reeves told Sky News: "Britain is not here to be buffeted around. We've got an economic plan, and it is the right one for our country.
"If other countries want to increase trade barriers, that is their choice, but we are determined to bring trade barriers down which is why this week I'm meeting with European, Gulf partners, Canadians to talk about how we can free up trade and make it easier for businesses to trade around the world.
"And on President Trump, we worked last year to get a trade deal. And as the US commerce secretary, Howard Lutnick said when I saw him yesterday, he doesn't see any reason why that trade deal should be undone."
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index slightly lower, and the Nasdaq Composite down 0.2%.
The yield on the US 10-year Treasury was quoted at 4.29%, widening slightly from 4.28% at the close on Tuesday. The yield on the US 30-year Treasury grew to 4.92% from 4.91%.
In London, JD Sports Fashion climbed 3.5% after it said it will meet market expectations for annual profit, as it highlighted an improving trend in its key market of North America.
The Manchester, England-based sportswear retailer said it expects financial 2026 profit before tax and adjusting items to be in line with current market expectations, which it placed at GBP849 million. This would be down 8.0% from GBP923 in financial 2025, which in turn was down 4.0% from GBP961 million in financial 2024.
JD Sports' financial year runs to the end of January.
In the fourth quarter to date, or the nine weeks to January 3, group sales fell 1.8% on a like-for-like basis, but climbed 1.4% on an organic basis. In the year-to-date, like-for-like sales fell 2.1% but rose 2.2% on an organic basis.
"Overall sales during the peak period were in line with our expectations, against a volatile consumer backdrop. Black Friday saw strong customer engagement across all regions, but demand softened in the first half of December, particularly in Europe and the UK," Chief Executive Officer Regis Schultz said.
Shares in ICG were down 3.8% after it hailed a "modest recovery" in transactions, with assets under management ahead of the level reported a year ago.
The London-based private equity firm said AuM totalled about USD127 billion at the end of December, the third quarter of its financial year which ends on March 31. The total represents an increase from approximately USD107 billion a year earlier and from USD124 billion at September 30.
Fee-earning AuM amounted to USD84.86 billion at December 31, rising 19% from USD71.14 billion a year before, and up 1.3% on-quarter from USD83.79 billion.
Transaction activity is "continuing to show modest recovery with some variability between asset classes", ICG said, and it saw a "positive total balance sheet return" for the quarter and year-to-date.
On the FTSE 250 index, Currys rose 5.4% as it raised its annual profit guidance after reporting an acceleration in sales growth, with the Nordics delivering a "standout" performance.
The London-based electrical and telecommunications retailer now expects full-year adjusted pretax profit of GBP180 million to GBP190 million, up 11% to 17% from GBP162 million in financial 2025, and ahead of consensus expectations for GBP180 million.
Currys' financial year runs to the end of April, and it will provide a full-year trading update on May 20.
Currys said like-for-like revenue growth accelerated to 6% in the 10 weeks ended January 10, its peak sales period, compared to 4% in the first half of the financial year.
"Our omni-channel model is winning. We gained market share in both UK&I and Nordics, in both stores and online, and our fastest growth was where customers use both channels together. This is a competitive advantage we'll keep building," said Chief Executive Alex Baldock.
On the AIM market, Sovereign Metals jumped 35%.
The Perth, Australia-based mining company recovered heavy rare earth monazite concentrate from Kasiya rutile tailings stream.
It said early analysis shows Kasiya monazite contains "exceptionally elevated" levels of heavy rare earth elements dysprosium terbium and yttrium.
Dysprosium terbium is used in high-temperature permanent magnets, while yttrium is critical for aerospace, thermal barrier coatings and radar and laser systems, among other uses.
"This is an exceptional development that has the potential to fundamentally enhance Kasiya's strategic significance. With simple processing, our upgraded laboratory has recovered a valuable monazite concentrate product from the rutile tailings stream, with heavy rare earth content that the world's major producers simply cannot match," said Chief Executive Officer Frank Eagar.
Gold was higher at USD4,865.70 an ounce at midday on Wednesday from USD4,742.56 late Tuesday.
The yellow metal hit another record high of USD4,888.43 earlier on Wednesday.
Brent oil was trading slightly higher at USD64.95 a barrel from USD64.89.
Still to come on Wednesday's economic calendar is Canadian producer price inflation data.
By Michael Hennessey, Alliance News reporter
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