19th Jan 2026 12:11
(Alliance News) - Stock prices in London were lower at midday on Monday, though the defensively weighted FTSE 100 did not fall as much as peers, as leaders weighed responses to US President Donald Trump's tariff threat over Greenland.
The FTSE 100 index was down 48.78 points, 0.5%, at 10,186.51. The FTSE 250 was down 242.72 points, 1.0%, at 23,068.65, and the AIM All-Share was down 1.93 points, 0.2%, at 802.82.
The Cboe UK 100 was down 0.4% at 1,018.42, the Cboe UK 250 was down 1.1% at 20,211.46, and the Cboe Small Companies was down 0.8% at 17,856.40.
In European equities on Monday, the CAC 40 in Paris was 1.6% lower, while the DAX 40 in Frankfurt sank 1.4%.
Sterling was at USD1.3407 at midday on Monday, up from USD1.3382 at the London equities close on Friday. The euro was higher at USD1.1627 from USD1.1596. Against the yen, the dollar was marginally higher at JPY158.08 versus JPY158.06.
Geopolitical developments were brought sharply into focus on Monday, after US President Donald Trump threatened to impose up to 25% tariffs on countries that don't support his plans to take over Greenland.
From February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would be subject to a 10% tariff on all goods sent to the US, Trump said in a post on his Truth Social website.
"On June 1st, 2026, the tariff will be increased to 25%. This tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland," he wrote.
European leaders were weighing retaliatory measures, as aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used "anti-coercion instrument".
This measure allows for curbing imports of goods and services into the EU.
However, UK Prime Minister Keir Starmer said the issue should be resolved through "calm discussion between allies" rather than military action or a trade war.
"Going hostile against Europe had the potential to cause considerable upset on financial markets. While we've seen a red day for European shares in general, it's not panic time. What needs to be watched closely is how markets behave over the near-term. A 1% to 1.5% decline every day over a series of weeks adds up to trouble, and that's what investors are keen to avoid happening," said AJ Bell analyst Dan Coatsworth.
"Defence stocks continue to be in vogue as investors take the view heightened geopolitical tensions create a stronger earnings backdrop for military and security specialists. Utility stocks were in demand as investors sought to park some of their money in a sector that should tick over whether everything is good or bad in the world."
Coatsworth added: "The omnipresence of gold miners, defence contractors and utility providers on the FTSE 100 explains why the UK blue-chip index fared much better relative to other major European indices."
Fresnillo led the index and climbed 5.5%, while Endeavour Mining was up 2.3%. Defence firms BAE Systems and Babcock International climbed 1.3% and 1.2%.
In the wake of the tariff news, Diploma fell the most on the FTSE 100, down 3.7%. Other fallers were Spirax Group, Diageo and Burberry which fell 2.7%, 2.6% and 2.4% respectively.
Gold was sharply higher at USD4,661.20 an ounce at midday on Monday from USD4,594.24 late Friday.
The yellow metal hit a new record high of USD4,690.75 earlier.
US financial markets are closed on Monday for Martin Luther King Jr Day, but the futures market was open.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.9%, the S&P 500 index 1.1% lower, and the Nasdaq Composite down 1.5%.
The cash market in the US will reopen on Tuesday.
In London, WH Smith led the way on the FTSE 250 index and advanced 8.7% as it recruited corporate turn-around expert Leo Quinn to be executive chair, as it seeks to put a damaging accounting error behind it.
Quinn is the former chief executive officer of construction firm Balfour Beatty, where he led a "significant business transformation", WH Smith noted. Quinn will take the chair on April 7, while Non-Executive Chair Annette Court will leave the board at WH Smith's annual general meeting on February 2.
Senior Independent Director Simon Emeny will act as interim non-executive chair until Quinn's appointment.
Back in August, WH Smith said a financial review identified an overstatement of around GBP30 million of expected headline trading profit in North America. It tied this to the accelerated recognition of supplier income in its North America division.
In December, the UK's financial watchdog launched an investigation into the accounting error. The UK Financial Conduct Authority started the investigation following a review by accountants Deloitte that led to the resignation of Carl Cowling as chief executive in November.
AJ Bell analyst Dan Coatsworth said: "Quinn clearly sees potential in the business, which benefits from a captive audience in airports and railway stations, and the nature of his compensation and a personal investment in the shares means his interests are aligned with investors."
Shares in Marshalls were down 5.2% as it confirmed its interim chief executive officer as permanent CEO, said its 2025 results will be as previously guided and 2026 will be boosted by cost savings, amid a continued weak construction market in the UK.
The Yorkshire, England-based maker of hard landscaping products such as paving stones said it expects to report adjusted pretax profit in line with market expectations, as revenue edged up in 2025.
In a trading update on Monday, Marshalls said revenue was up 2.1% to GBP632 million in 2025 from GBP619.2 million in 2024. This is in line with trends reported in its November trading update, the company noted.
Adjusted pretax profit is expected to be in line with market expectations of GBP43.6 million, which would be down 16% from GBP52.2 million in 2024.
Looking ahead, the outlook for 2026 "continues to be uncertain", Marshalls said, adding it will focus on operational improvements.
Action taken to reduce its cost base during 2025 gives the company confidence that it will deliver an improved financial performance in 2026, Marshalls said, despite no expectation of a significant improvement in market activity.
Marshalls also on Monday said it has confirmed Simon Bourne as its permanent CEO, after he took on the position on an interim basis from November.
Thor Energy shares jumped 21% on the AIM market.
The US and Australia-focused mineral exploration company received a cash completion payment of AUD2.3 million, around GBP1.1m, for the sale of the FRAM joint venture, which holds the Molyhil project in Australia, to Tivan.
It said three additional payments totalling AUD3.9 million are due from September 2026 to September 2028. The company announced the sale in September last year.
"For Thor shareholders, the monetisation of Molyhil has already led to a significant inflow of cash to the company, and there will be three further annual payments of AUD1.3 million commencing from this September. This means more resources to advance Hy-Range and less dilution to achieve this," said Thor Energy Chair Alastair Clayton.
Brent oil was trading lower at USD63.75 a barrel from USD64.48.
Still to come on Monday's economic calendar are inflation figures from Canada.
By Michael Hennessey, Alliance News reporter
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