7th Jan 2026 09:09
(Alliance News) - Stock prices in London opened lower on Wednesday, as the FTSE 100 retreated from a record high, as oil firms BP and Shell weighed on the blue-chip index.
The FTSE 100 index opened down 49.79 points, 0.5%, at 10,072.94. The FTSE 250 was down 50.90 points, 0.2%, at 22,740.99, and the AIM All-Share was up 1.12 points, 0.1%, at 780.62.
On Tuesday, the index of London large-caps closed up 1.2% at 10,122.73, a record closing peak.
The Cboe UK 100 was down 0.6% at 1,010.68, the Cboe UK 250 was down 0.2% at 19,794.34, and the Cboe Small Companies was down 0.2% at 17,952.17.
In European equities on Wednesday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was up 0.5%.
Sterling was at USD1.3493 on Wednesday morning, down from USD1.3500 at the London equities close on Tuesday. The euro was slightly lower at USD1.1685 from USD1.1689. Against the yen, the dollar was lower at JPY156.51 versus JPY156.67.
"The year may have begun with ongoing trade tensions and fresh geopolitical uncertainties, questions around the legitimacy of Trump's actions — both on trade and geopolitical fronts — and persisting doubts over AI valuations, but none of this has been enough to prevent the bulls from pushing toward fresh records," said Swissquote analyst Ipek Ozkardeskaya.
"While the immediate Venezuelan risk may now be behind us, the message is clear: the US is unlikely to stop here. Relations with NATO and Europe are already under strain over Greenland, which strengthens the case for maintaining — and even increasing — exposure to defense stocks," Ozkardeskaya added.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, while the S&P 500 climbed 0.6% and the Nasdaq Composite ended up 0.6%.
The yield on the 10-year US Treasury was at 4.15% on Wednesday morning, narrowed from 4.20% on Tuesday. The yield on the 30-year was at 4.83%, slimmed from 4.88%.
In Asia on Wednesday, the Nikkei 225 in Tokyo was down 1.1%. In China, the Shanghai Composite was 0.1% higher, while the Hang Seng Index in Hong Kong lost 0.9%. The S&P/ASX 200 in Sydney rose 0.2%.
In London, Vodafone led the way on the FTSE 100 and climbed 2.4%.
Berenberg raised its rating on the Berkshire, England-based telecommunications company to 'buy' from 'hold' and increased its price target on the stock to 119 pence from 82p.
Oil majors BP and Shell acted as a drag on the index and fell 2.8% and 2.2% respectively as the price of oil fell.
Brent oil was trading lower at USD60.14 a barrel from USD61.59 after comments from US President Donald Trump.
The US will receive between 30 million and 50 million barrels of "sanctioned oil" from Venezuela's interim government, Trump said.
In a post on his Truth Social platform, Trump said the oil would be sold at market prices and that the proceeds would be controlled by him as president to ensure they were used "to benefit the people of Venezuela and the US."
Trump added: "I have asked Energy Secretary Chris Wright to execute this plan, immediately. It will be taken by storage ships, and brought directly to unloading docks in the US."
Meanwhile, Hikma Pharmaceuticals fell 2.2% after Barclays cut its rating to 'underweight' from 'equal weight' with a price target of 1,600p, down from 2,100p.
GSK shares fell 0.9% as it reported positive developments with its shingles vaccine and its potential treatment for chronic hepatitis B, and secured a presentation approval and announced positive data.
The London-based pharmaceuticals firm said it has secured approval from the European Commission for its shingles vaccine, Shingrix, in a pre-filled syringe.
GSK explained that the current vaccine presentation includes two vials, with the new pre-filled syringe option simplifying the administration process for healthcare professionals.
The company noted that up to one in three adults will develop shingles in their lifetime. It is a disease caused by the reactivation of the same virus that causes chickenpox, explained GSK.
GSK said the new presentation will commence rollout across EU countries this year.
"This new presentation of Shingrix has been designed to improve ease of administration, helping healthcare professionals to provide protection against shingles," said GSK Chief Scientific Officer Tony Wood.
On the FTSE 250 index, Great Portland Estates climbed 1.4%.
The London-based commercial real estate developer and landlord said it has bought a new 155-year leasehold interest in 10 South Crescent, WC1 in London for GBP51 million, or GBP708 per square foot on the current net internal area.
It said the price reflects a 6.8% net yield and projected 7.1% running yield once the vacant retail unit is let.
The property "will be repositioned to create a best-in-class, decarbonised HQ office and retail building, with premium amenities and enlarged roof terraces," Great Portland said.
On the AIM market, Galantas Gold shares more than doubled.
The firm said it has agreed to buy a 100% ownership interest in the Andacollo Oro gold project, located in the Coquimbo region of central Chile.
The project is a past-producing, large-scale open pit heap leach gold operation with existing infrastructure, permits and historical technical data.
Galantas said the acquisition represents a "significant strategic step".
The total cash consideration payable under the agreement is USD32.0 million. This includes USD4.5 million in cash on closing.
The controlling shareholder of the owner of the project will receive 91.3 million Galantas shares, representing around 20% of Galantas, subject to approval.
"This transaction represents a clear step-change in the scale and profile of Galantas. The acquisition of the Andacollo Oro gold project fundamentally repositions the company, adding a large-scale, past-producing gold asset with existing infrastructure, permits, and a deep technical database in one of Chile's most established mining districts," said Chief Executive Officer Mario Stifano.
Gold was down at USD4,467.20 an ounce early on Wednesday from USD4,485.16 late Tuesday.
Still to come on Wednesday's economic calendar is UK construction PMI, which is due shortly, and eurozone inflation figures.
In the US, the ISM services PMI will be published, along with ADP unemployment data and the JOLTS job vacancies report.
By Michael Hennessey, Alliance News reporter
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VodafoneBPShellHikma PharmaceuticalsGlaxosmithklineGPE