27th Jan 2026 09:19
(Alliance News) - Stock prices in London opened higher on Tuesday, with gains led by financial stocks, while sterling eased from recent highs and investors digested a heavy morning for company updates.
The FTSE 100 index opened up 23.09 points, 0.2%, at 10,171.21. The FTSE 250 was down 19.94 points, 0.1%, at 23,331.72, and the AIM all-share was down 3.30 points, 0.4%, at 825.19.
The Cboe UK 100 was up 0.1% at 1017.58, the Cboe UK 250 was down 0.3% at 20541.16, and the Cboe small companies was down 0.2% at 20,541.16.
In European equities on Tuesday, the CAC 40 in Paris was up 0.1%, while the DAX 40 in Frankfurt was also up 0.1%.
The pound was quoted at USD1.3674 early on Tuesday in London, lower compared to USD1.3704 at the equities close on Monday. The euro stood at USD1.1861, lower than USD1.1884. Against the yen, the dollar was trading at JPY54.67, up compared to JPY153.99.
UK Prime Minister Keir Starmer begins his trip to China on Tuesday, saying he is confident he can pursue trade deals with Beijing without upsetting US President Donald Trump.
Starmer is attempting to rebuild relations with China following a freeze in Sino-British ties during the final years of the Conservative government.
Ahead of the visit, a Downing Street source said the government was taking a “hard-headed, grown-up approach" to its relationship with China, aiming to chart a “steady, consistent course" with Beijing.
Canadian Prime Minister Mark Carney secured a deal on tariff reductions during his own trip to China earlier this month, during which he suggested Beijing was becoming a more stable and reliable partner than Washington under Trump.
Although the US president initially welcomed the agreement, he later threatened to impose 100% tariffs on Canada should the deal proceed.
Financial stocks led gains at the top of the FTSE 100, with HSBC, Prudential, NatWest, St James's Place and Barclays rising 1.8%, 1.4%, 1.4%, 1.3% and 1.1% respectively.
Also on the FTSE 100, Sage Group was up 1.0% after reporting a “strong" first quarter, with revenue rising across all regions. The accounting and payroll software provider said total revenue grew 10% to GBP674 million from GBP610 million a year earlier.
Dr Martens shares were the biggest drag on the FTSE 250, down 8.9%, after reporting mixed third-quarter trading. Growth in the Americas was offset by weaker performance in Europe, the Middle East & Africa, and Asia Pacific.
The bootmaker said revenue fell 3.1% to GBP251 million in the 13 weeks to December 28, or by 2.7% at constant currency. Year-to-date revenue stood at GBP573 million, down 1.8% reported and 0.7% at constant currency.
Chief Executive Officer Ije Nwokorie said: "This is a year of pivot, as we make the necessary changes to our business to set us up for future sustainable growth."
Cranswick shares rose 1.2% as the company said it expects full-year profit at the top end of guidance after “record" Christmas trading.
The food producer reported continued positive momentum in the 13 weeks to December 27, with all product categories ahead of last year. December sales rose year-on-year, driven by record festive demand across Fresh Pork, Convenience and Gourmet ranges.
UK Chancellor Rachel Reeves is set to unveil a GBP300 million support package for pubs after warnings that budget tax changes could lead to mass closures, job losses and price increases.
Other hospitality businesses, including restaurants, cafes and hotels, are expected to miss out despite also warning about rising costs.
Shares in London-listed pub operators were mixed. Marston's rose 2.6%, Mitchells & Butlers gained 0.4% and Fuller, Smith & Turner climbed 0.9%, while Young & Co's fell 1.4%.
Among smaller caps, Costain was up 0.3% after the construction and engineering group won a GBP100 million contract over five years to design and build a new M5 motorway junction serving a major gigafactory project in the UK.
The junction will provide access to the Gravity Smart Campus and a planned GBP4 billion electric vehicle battery gigafactory, expected to be the largest in Britain.
Eleco shares jumped 13% after the firm said revenue and adjusted profit are expected to be ahead of market forecasts. Eleco expects 2025 revenue to rise 20% to GBP38.8 million from GBP32.4 million.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.9%. In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was up 1.4%. The S&P/ASX 200 in Sydney closed up 0.9%.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.4%
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 quoted at 4.81%, also unchanged.
Brent oil was trading at USD64.43 a barrel early Tuesday, lower than USD65.43 late Monday.
Gold steadied after its recent surge on strong safe-haven demand, quoted at USD5,081.90 an ounce early Tuesday, slightly lower than USD5,095.11 on Monday.
Still to come on Tuesday's economic calendar is the US house price index.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
BarclaysPrudentialNatwestSt James's PlaceHSBC HoldingsCranswickSage GroupDr. MartensMitchells & ButlersFuller Smith & TurnerYoung & Co's BreweryElecosoft