27th Jan 2026 12:07
(Alliance News) - Stock prices in London were higher at midday on Tuesday, with gains led by banks and other Asia-exposed stocks, while miners pared some of Monday's advances after gold prices stabilised.
The FTSE 100 index was up 56.26 points, 0.6%, at 10,205.11. The FTSE 250 was down 1.59 points, marginally lower at 23,350.06, and the AIM all-share was down 3.13 points, 0.4%, at 825.36.
The Cboe UK 100 was up 0.5% at 1,021.06, the Cboe UK 250 was down 0.2% at 20,552.85, and the Cboe small companies was up 0.3% at 18,328.49.
In European equities on Tuesday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was down 0.2%.
Leaders from India and the European Union were set to announce what has been billed as the "mother of all deals" on Tuesday, when they meet in New Delhi to formalise a sweeping trade pact concluded after two decades of negotiations.
EU leaders and Indian Prime Minister Narendra Modi hope the agreement, which Modi said was finalised on Monday, will help shield both sides from economic challenges posed by the world's two largest economies, the US and China.
"People in the world are discussing this as a mother of all deals," Modi said on Tuesday in New Delhi ahead of meetings with European Commission President Ursula von der Leyen and European Council President Antonio Costa.
"This deal will bring many opportunities for India's 1.4 billion people and many millions across the EU," Modi said, adding the agreement "represents about 25% of global GDP and one-third of global trade".
Meanwhile, the bloc's largest economy, Germany, plans major reforms to simplify its welfare system, according to a report seen by AFP on Tuesday, though the government insisted benefits would not be cut. Conservative Chancellor Friedrich Merz has pledged to tackle what he calls a "bureaucracy monster".
A government-appointed commission has proposed measures including moving more services online and reducing the number of agencies overseeing benefits, according to the final report.
The pound was quoted at USD1.3702 at midday on Tuesday in London, compared to USD1.3704 at the equities close on Monday. The euro stood at USD1.1888 versus USD1.1884. Against the yen, the dollar was trading at JPY153.71, down from JPY153.99.
Back in the UK, the government announced plans to cap existing annual ground rents at GBP250 per property from 2028, introducing a 40-year transition period after which all ground rents would be reduced to zero.
Dan Coatsworth, head of markets at AJ Bell, said: "Radical changes to the ground rent system create uncertainty for certain parts of the investment market. While leaseholders will be jumping for joy at the GBP250 annual cap, it begs the question as to what pension funds invested in this space will do. Ground rents have historically been considered a solid investment, providing long-term and predictable income.
"Reform of the ground rent system has been on the cards for some time, and valuations for related investments have been hit. Pension funds and life insurance companies may well have already started reassessing such holdings, and today's news will exacerbate that thought process."
Stronger Asian markets lifted Asia-focused stocks, with HSBC and Prudential up 2.9% and 1.9% respectively, joining NatWest and Barclays, up 2.0% and 1.5%, among the top performers on the FTSE 100.
The exception to the positivity in Asian markets was South Korea after the Trump administration announced it was raising tariffs on imports from the country to 25% after accusing Seoul of not living up to a deal agreed last year.
Miners gave back some of Monday's gains in a quieter session for commodity prices. Fresnillo fell 2.9% and Antofagasta slipped 1.6%.
Burberry shares rose 1.1% after Barclays raised the luxury fashion house to 'overweight' from 'equal weight', lifting its price target to 1,450 pence.
On the FTSE 250, Paragon Banking Group fell 1.4% after backing its annual outlook and reporting a solid start to the financial year. Total lending in the first quarter to December 31 rose 6.9% to GBP724.0 million from GBP677.4 million a year earlier.
Buy-to-let lending edged up 0.4% year-on-year to GBP425.0 million, while commercial lending jumped 18% to GBP299.0 million.
Mitie slipped 0.2% after saying it remains on track to meet its financial targets amid a record order book and strong third-quarter performance. Revenue rose 10% to GBP1.45 billion in the three months to December 31 from GBP1.31 billion a year earlier.
Among smaller caps, Evoke dropped 6.2% as the Gibraltar-based betting and gaming group reported 2% revenue growth to GBP1.78 billion in financial 2025 and expects adjusted Ebitda of GBP355 million to GBP360 million, up around 15% year-on-year.
Chief Executive Per Widerstrom said the UK budget in November had dealt a "significant blow" to both the company and the wider regulated industry. Analysts at Peel Hunt moved their rating on Evoke to 'under review' from 'buy'.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called down 0.2%, the S&P 500 index up 0.3%, and the Nasdaq Composite up 0.6%.
The yield on the US 10-year Treasury was quoted at 4.22%, unchanged from Monday. The yield on the US 30-year Treasury was also unchanged at 4.81%.
Brent oil was quoted at USD64.71 a barrel at midday in London on Tuesday, down from USD65.43 late Monday. Gold was quoted at USD5,086.00 an ounce, down from USD5,095.11.
Still to come on Tuesday's economic calendar is the US house price index at 1400 GMT.
By Eva Castanedo, Alliance News reporter
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