28th Jan 2026 12:12
(Alliance News) - Stock prices in London were lower at midday on Wednesday, as a stronger pound weighed on the export-heavy FTSE 100, despite strength among mining stocks.
The FTSE 100 index was down 42.46 points, 0.4%, at 10,165.25. The FTSE 250 was up 17.79 points, 0.1%, at 23,421.81, and the AIM all-share was up 6.23 points, 0.8%, at 831.04.
The Cboe UK 100 was down 0.5% at 10,16.07, the Cboe UK 250 was up 0.2% at 20,633.33, and the Cboe small companies was up 0.7% at 18,408.96.
Keir Starmer has arrived in China on the first visit by a British Prime Minister in eight years.
A delegation of almost 60 representatives of British businesses and cultural institutions is accompanying the prime minister as he continues his efforts to build bridges with Beijing.
But concerns over the risk China poses to national security and Xi Jinping's record on human rights mean Starmer's visit is politically sensitive.
Speaking to reporters on the flight to Beijing, the UK prime minister said: "The evidence there are opportunities is the fact that we've got so many CEOs with us on this flight, that we've got 60 coming out to explore those opportunities."
Starmer added that this "reflects back at home in terms of the benefit that it brings back to the UK".
Gold prices pushed to new record highs, breaking above the USD5,200 level, as the US dollar remained under pressure following signs the Trump administration may be tolerant of a weaker currency.
The latest surge followed last week’s New York Federal Reserve “rate checks” in USD/JPY and was reinforced by comments from US President Donald Trump on Tuesday. Trump dismissed concerns about the dollar’s recent slide, saying the currency was “doing great”.
"Look at the value of the dollar. Look at the business we are doing. The dollar is, the dollar is doing great," Trump said.
The pound was quoted at USD1.3781 at midday on Wednesday in London, higher compared with USD1.3765 at the equities close on Tuesday. The euro stood at USD1.1971, softly higher versus USD1.1969. Against the yen, the dollar was trading at JPY152.60, down from JPY153.05.
AJ Bell investment director Russ Mould said: "A weaker US currency is a headwind for the large contingent in the index which derive their revenue from across the Atlantic – although it continues to provide support to dollar-denominated gold which has moved above the USD5,200 level.
"At this rate, gold bugs will be eyeing the USD6,000 mark before the end of the year – with the 15% advance required to hit this level less than the 22.5% advance bullion has already managed in the first month of 2026."
Gold was quoted at USD5,265.90 an ounce, up from USD5,093.94 on Tuesday, lifting miners on London’s blue-chip index. Endeavour Mining was among the top gainers, up 3.3%.
In European equities on Wednesday, the CAC 40 in Paris was down 0.9%, while the DAX 40 in Frankfurt was down 0.2%.
Shares in ASML rose 4.5% in Amsterdam after the semiconductor equipment maker said it will cut around 4% of its workforce and reported a “record year”, capped by a “particularly strong” fourth quarter on robust artificial intelligence-related demand.
The company also raised its dividend, announced a new share buyback and said it expects further sales growth this year.
Stocks in New York were called higher. The Dow Jones Industrial Average was called marginally higher, the S&P 500 index up 0.3%, and the Nasdaq Composite up 0.9%.
The yield on the US 10-year Treasury was at 4.25%, widening from 4.22%. The yield on the US 30-year Treasury was quoted at 4.87%, widening from 4.82%.
The Federal Reserve is widely expected by markets to hold US interest rates steady on Wednesday, with policymakers likely viewing downside risks to employment and upside risks to inflation as more balanced.
The Fed’s decision is due at 1900 GMT, followed by a press conference with Chair Jerome Powell. A hold would keep the federal funds rate target range at 3.50% to 3.75%, marking the first pause since July after 25 basis point cuts in September, October and December.
Markets are also bracing for the start of Big Tech earnings from four of the so-called Magnificent Seven. Microsoft, Meta Platforms and Tesla report on Wednesday, followed by Apple on Thursday.
Separately, Elon Musk is targeting mid-June for the initial public offering of rocket launcher SpaceX to coincide with a rare alignment of Jupiter and Venus, the Financial Times reported on Wednesday.
SpaceX is seeking to raise as much as USD50 billion at a valuation of around USD1.5 trillion, which would make it the largest IPO since Saudi Aramco's USD29 billion float in 2019, the newspaper said.
Back in London, Burberry was the biggest faller on the FTSE 100 after it emerged that BlackRock’s holding in the fashion house had fallen below the reporting threshold to under 5% as of Monday, from 5.54%.
On the FTSE 250, Energean was down 2.9% after Berenberg cut its price target to 780 pence from 855 pence, while maintaining a 'hold' rating.
PPHE Hotel Group slipped 0.9% after saying it expects to report revenue growth for 2025, with UK and Croatian hotels performing well, offset by subdued trading in the Netherlands and Germany.
The Guernsey-registered owner of Park Plaza and art’otel hotels reported a “solid” finish to 2025 and said full-year revenue and earnings before interest, tax, depreciation and amortisation are expected to meet market expectations, while its strategic review remains ongoing.
Room revenue for the three months to December 31 rose 4.9%, with revenue per available room up 5.0%, supported by a 7.8% increase in average room rate and favourable currency movements. Full-year room revenue is expected to reach GBP330.4 million, up 4.2% from GBP317.2 million in 2024.
Among smaller caps, pub operator Marston's slumped 13% despite reporting strong Christmas trading. The company said like-for-like sales rose 4.0% in the 17 weeks to January 24 and climbed 5.6% over key festive days.
The Wolverhampton-based operator of more than 1,300 pubs said trading remains in line with the prior year and continues to outperform the wider market, citing resilient demand, rollout of new pub formats and ongoing margin improvement. It added that events such as the 2026 FIFA World Cup underpin confidence for the year ahead.
London-based alternative finance provider Sancus surged more than fourfold after reporting strong trading in 2025, driven by rapid growth across its UK and Irish businesses.
The company said new lending facilities totalled GBP212 million in 2025, almost double GBP108 million in 2024. Sancus expects revenue to rise 32% to GBP22.1 million from GBP16.8 million and anticipates pretax profit above GBP1.0 million, compared with GBP100,000 a year earlier.
In economic data, retail sales in Ireland fell both year-on-year and month-on-month in December, provisional figures from the Central Statistics Office showed.
Retail sales slipped 0.1% on-year in December, compared with 2.5% growth in November. On a monthly basis, sales fell 0.4% after a 0.5% rise previously.
Brent oil was quoted at USD66.48 a barrel at midday in London, up from USD65.92 late Tuesday. London-listed oil majors Shell and BP rose 0.9% and 0.6% respectively, supported by higher crude prices.
Still to come on Wednesday's economic calendar are Ireland retail sales and interest rate decisions from Canada and the US.
By Eva Castanedo, Alliance News reporter
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