16th Jan 2026 09:06
(Alliance News) - Stock prices in London opened lower on Friday, tracking weakness across European equity markets.
The FTSE 100 index opened down 23.79 points, 0.2%, at 10,215.15. The FTSE 250 was up 33.33 points, 0.1%, at 23,313.06, and the AIM All-Share was up 0.61 points, 0.1%, at 805.18.
The Cboe UK 100 was down 0.3% at 10,21.97, the Cboe UK 250 was up 0.1% at 20,389.99, and the Cboe Small Companies was up 0.1% at 18,126.50.
UK stocks opened weaker, moving in line with equity benchmarks across Europe, with the FTSE 100 weighed down by miners and oil companies.
At the top of the FTSE 100, however, defence-oriented stocks were in demand. BAE Systems led the index, up 1.9%, followed by Babcock, up 1.8%, and Rolls-Royce, up 1.6%.
Michael Brown Senior Research Strategist at Pepperstone said: "Sentiment proved steadier yesterday, as uncertainty faded, and US data remained resilient, seeing stocks rebound, and metals slip. Today, US industrial production highlights a light data docket."
Sterling was quoted at USD1.3398 early Friday, higher than USD1.3388 at the London equities close on Thursday. The euro traded at USD1.1612 early Friday, marginally higher than USD1.1607 late Thursday. Against the yen, the dollar was quoted at JPY158.17, down from JPY158.48.
The US reached a deal with Taiwan to cut tariffs and boost investment, with Taiwan vowing on Friday to remain the world's "most important" AI chipmaker.
Taiwan is a major producer of semiconductors, a critical component of the global economy, while the US has pushed for more chip production to be based domestically. The agreement "will drive a massive reshoring of America's semiconductor sector," the US Commerce Department said.
Under the deal, Washington will lower tariffs on Taiwanese goods to 15%, down from a 20% "reciprocal" rate aimed at addressing US trade deficits and practices it deems unfair. Taiwanese Premier Cho Jung-tai praised negotiators for "delivering a well-executed home run" following months of talks.
In European equities on Friday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.1%.
German consumer price inflation cooled in December, data published by the Federal Statistical Office confirmed on Friday.
The annual consumer price index inflation rate slowed to 1.8% in December from 2.3% in November. Consumer prices were unchanged on the month, following a 0.2% decline in November.
On a harmonised basis, which allows for EU-wide comparison, annual inflation eased to 2.0% in December from 2.6% in November. On a monthly basis, harmonised prices rose 0.2%, after a 0.5% fall in November.
For the full year 2025, Germany's annual inflation rate was 2.2%, unchanged from 2024, while the harmonised annual inflation rate slowed to 2.3% from 2.5%.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.3%. In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong was down 0.3%. The S&P/ASX 200 in Sydney closed up 0.5%.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.3%.
The yield on the US 10-year Treasury was quoted at 4.17%, widening from 4.14%. The yield on the US 30-year Treasury was quoted at 4.80%, unchanged.
Back in London, Next was at the bottom of the FTSE 100, down 2.8%, on the day it said the redemption of B shares issued under its previously announced capital return scheme will take place on Friday.
The Leicester, England-based clothing and homeware retailer said eligible shareholders are expected to receive payment on or before January 28.
The move forms part of Next's planned GBP421.3 million return of capital, announced on December 19, when the company said it had chosen a B share scheme priced at 360 pence per share following a strong 2025. The scheme received shareholder approval at a general meeting on Thursday.
Pearson was the second-biggest faller on the FTSE 100, down 2.6%, after Barclays cut its price target to 1,070 pence from 1,175 pence, while maintaining an 'equal weight' rating.
HSBC shares fell 0.5% after it revealed plans to review its insurance business in Singapore, in the latest move by Chief Executive Officer Georges Elhedery to overhaul the London-based bank.
The group said the review will cover HSBC Life Singapore and that it will consider all options for the division, including a potential sale that could be worth over USD1 billion, according to reports. HSBC added that Singapore remains a "priority market" and said it will continue to offer insurance products to customers there.
On the FTSE 250, Genus was the top performer, up 9.9%, after lifting full-year expectations following a stronger-than-expected first half and confirming its Chinese porcine joint venture remains on track.
The animal biotechnology and genetics company said adjusted pretax profit for the six months to December 31 is expected to be about GBP50 million, or GBP55.6 million including a USD7.5 million, around GBP5.6 million, milestone payment linked to its porcine JV in China.
Genus said trading in its PIC division remained strong, while ABS performed in line with expectations. As a result, full-year adjusted pretax profit excluding the milestone payment is now expected to come in moderately above the top of its GBP82.7 million to GBP85.0 million guidance range.
Close Brothers rose 6.0% after RBC raised its rating to 'outperform' from 'sector perform' and lifted its price target to 625 pence from 475 pence.
Watches of Switzerland gained 4.4% after Bank of America raised the stock to 'buy' with a price target of 550 pence.
Among smaller caps, Imaging Biometrics slumped 35% after saying it no longer plans to proceed with a phase two trial of gallium maltolate for glioblastoma.
Brent oil was quoted at USD64.00 a barrel early in London on Friday, up from USD63.55 late Thursday. Gold was quoted at USD4,603.10 an ounce, down from USD4,616.76.
Still to come on Friday's economic calendar are US industrial production figures.
By Eva Castanedo, Alliance News reporter
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