12th Jan 2026 12:20
(Alliance News) - Stock prices in London tiptoed into the red by midday on Monday, with the FTSE 100 edging marginally lower as the dollar fell after US prosecutors opened an inquiry threatening a "criminal indictment" against the Federal Reserve.
The FTSE 100 index was down 0.80 points, marginally lower, at 10,123.80. The FTSE 250 was down 72.94 points, 0.3%, at 22,964.60, and the AIM All-Share was up 4.69 points, 0.6%, at 795.11.
The Cboe UK 100 was flat at 1,016.51, the Cboe UK 250 was down 0.4% at 20,048.17, and the Cboe Small Companies was up 0.1% at 17,932.66.
In European equities on Monday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was up 0.3%.
Most of the pressure remained centred on the US, where the dollar was slipping against all major currencies and stock futures were sliding by more than the declines seen in Europe and the UK.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.7%, the S&P 500 index down 0.6%, and the Nasdaq Composite down 0.9%.
The yield on the US 10-year Treasury was quoted at 4.20%, widening from 4.17%. The yield on the US 30-year Treasury was quoted at 4.87%, widening from 4.83%.
"Markets dipped as investors feared about the independence of the Federal Reserve," said Russ Mould, investment director at AJ Bell.
Federal Reserve Chair Jerome Powell on Sunday said the Justice Department had served the central bank with grand jury subpoenas threatening a criminal indictment, marking a major escalation of the Trump administration's attacks on the Fed.
Powell said the action related to congressional testimony given in June on renovation work at the Fed's headquarters in Washington, but added it should be seen in the broader context of attacks launched by the administration, and particularly the president, over interest rate policy.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president," Powell said.
AJ Bell's Mould said: "The probe has unnerved markets and raised questions about what might happen to the Fed once Powell steps down in May. There is a fear that Trump is meddling too much with policies that are meant to be set independently.
"Investors rushed to buy gold, taking the precious metal price to a new record high of just over USD4,600 per ounce. It’s a popular hedge against inflation and it is an asset with safe-haven qualities that often shines in an uncertain market."
Gold climbed to a fresh record high on Monday, as a mix of geopolitical tension and questions over Federal Reserve independence sent investors towards safe havens.
The safe-heaven asset was quoted at USD4,585.50 an ounce, higher against USD4,504.56.
In London, miners led the FTSE 100, supported by the rise in gold prices, with Fresnillo the top gainer, up 7.2%, while Endeavour Mining and Glencore followed, up 3.0% and 2.2% respectively.
The pound was quoted at USD1.3459 at midday on Monday in London, up compared to USD1.3407 at the equities close on Friday. The euro stood at USD1.1678, higher against USD1.1631. Against the yen, the dollar was trading at JPY157.95, down compared to JPY158.06.
Oil markets have also been in focus over the past week following the toppling of Venezuelan leader Nicolas Maduro by US forces. Trump urged executives from major US oil companies to ramp up investment in Venezuela during a White House meeting on Friday.
Speaking afterwards, Trump said US companies would invest hundreds of billions of dollars in Venezuela, without providing details.
Trump told executives he wanted US oil companies to commit at least USD100 billion to boost Venezuelan oil production. "If you don't want to go in, just let me know, because I've got 25 people that aren't here today that are willing to take your place," he said.
Trump added that the US and Venezuela were "working well together" to rebuild the country's energy infrastructure.
Further attention has also been drawn to oil markets amid rising tensions in Iran, another major producer, as unrest grows and anti-government demonstrations erupt. Trump has previously threatened to "hit" Iran "very hard" if security forces kill protesters.
Brent oil was quoted at USD62.91 a barrel at midday in London on Monday, down from USD63.42 late Friday.
Back in London, Barclays fell 3.5%, the biggest individual decliner on the FTSE 100, reflecting its potential exposure to Trump's calls for a cap on credit card interest rates, followed by Mondi, down 3.3% after Morgan Stanley cut the stock to 'underweight' with a price target of 800 pence.
On the FTSE 250, WPP was down 2.5% after Citi started coverage with a 'neutral' rating and a price target of 365 pence, while Oxford Nanopore rose 8.1%, the biggest gainer, after the Oxford-based DNA and RNA sequencing specialist said 2025 revenue is expected to rise to between GBP223 million and GBP224 million from GBP183.2 million a year earlier.
This represents reported growth of 22% and constant-currency growth of 24%, slightly above its 20% to 23% guidance range.
Plus500 rose 1.5% as it said it expects to report forecast-topping 2025 results and is targeting further progress and additional shareholder returns.
The Haifa, Israel-based contracts-for-difference trading platform operator expects to report earnings before interest, tax, depreciation and amortisation of around USD348 million and revenue of USD792 million, both ahead of current market expectations. Consensus is USD345.8 million for Ebitda and USD757.7 million for revenue.
It noted a focus on "higher value customers in 2025". It onboarded around 104,500 new customers last year, down from 118,010 in 2024, while active customers totalled around 242,000, compared to 254,138 previously.
Among smaller caps, IQE shares surged 40% after reporting "positive" trading in the second half of 2025, supported by stronger-than-expected demand from military and defence programmes and new handset launches.
The compound semiconductor supplier said faster funding releases for some US defence programmes and higher photonics demand have driven performance toward the upper end of its financial 2025 guidance, with revenue of around GBP97 million and adjusted Ebitda of at least GBP2.0 million.
Still to come on Monday's economic calendar is Germany's current account data.
By Eva Castanedo, Alliance News reporter
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