26th Jan 2026 09:26
(Alliance News) - Stock prices in London opened mixed on Monday, with the FTSE 100 edging lower as a rally against the dollar and strength in metals-related stocks shaped early trade, while investors look ahead to a heavy week of Big Tech earnings.
The FTSE 100 index opened down 3.33 points, 0.1%, at 10,139.75. The FTSE 250 was up 16.48 points, 0.1%, at 23,335.09, and the AIM all-share was up 4.88 points, 0.6%, at 827.79.
The Cboe UK 100 was up 0.1% at 1,014.47, the Cboe UK 250 was up 0.3% at 20,572.48, and the Cboe small companies was up 0.6% at 18,231.91.
Sterling rallied to its highest level since September against a broadly weaker dollar, which has come under renewed pressure amid unpredictable US policymaking under the Trump administration.
The dollar's weakness reflects pressure from multiple fronts, with the latest leg driven by debate over whether the US could join Japan in foreign exchange intervention.
Sterling was quoted at USD1.3665 early Monday in London, higher than USD1.3567 at the London equities close on Friday. The euro traded at USD1.1861 early Monday, higher than USD1.1758 late Friday.
In European equities on Monday, the CAC 40 in Paris was down 0.32%, while the DAX 40 in Frankfurt was down 0.1%.
Against the yen, the dollar was quoted at JPY153.98 early Monday, sharply lower than JPY157.99 on Friday.
The Japanese yen ended Friday's session as the strongest currency among the G10 and continued to appreciate on Monday, driven by speculation that the Bank of Japan was preparing to intervene in the foreign exchange market to support the currency.
Chris Turner at ING said: "From what we understand so far, Japanese authorities may have intervened on Friday when USD/JPY pushed above JPY159 after the BoJ policy meeting. The big kicker, however, was widespread discussion that at the London close on Friday, the Federal Reserve started asking banks in New York about their position sizes in USD/JPY.
"This was seen as akin to a 'rate check', where a central bank might be preparing the market for physical intervention.
"That the Fed was allegedly doing this and not making clear that this activity was purely on behalf of Japanese authorities – i.e., that the Fed was not acting purely as an 'agent' – has led to understandable suggestions that the US might be on the verge of joint intervention with Japan."
Despite the firmer yen, the Nikkei 225 index in Tokyo was down 1.8%.
Elsewhere in Asia on Monday, the Shanghai Composite in China was down 0.1%, while the Hang Seng index in Hong Kong was up 0.1%.
In the US on Friday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.6%, but the S&P 500 and the Nasdaq Composite up 0.1% and 0.3% respectively.
The yield on the US 10-year Treasury was quoted at 4.21%, narrowing from 4.27%. The yield on the US 30-year Treasury was quoted at 4.81%, narrowing from 4.87%.
Commodity markets rallied amid a flight to safe-haven assets, most notably gold, which pushed beyond the USD5,000 level.
Gold was quoted at USD5,092.30 an ounce early Monday, higher than USD4,984.07 on Friday, having struck another record high at the end of last week.
Silver, which had already surged beyond the USD100 mark on Friday, continued to extend gains and was quoted at USD109.60.
Brent oil was trading at USD66.04 a barrel early Monday, higher than USD65.76 late Friday.
Back in London, miners led the FTSE 100, supported by rising metals prices. Fresnillo, Antofagasta and Endeavour Mining were the top performers, up 4.0%, 2.6% and 2.5% respectively.
GSK shares were up 0.3% after the company said the European Commission approved an expanded indication for its respiratory syncytial virus vaccine Arexvy, allowing use in all adults aged 18 and over.
The London-based pharmaceutical company said the shot had previously been authorised only for adults aged over 60 and those at higher risk, but the updated decision enables rollout across the full adult population in the EU.
GSK noted that around 158,000 adults are hospitalised each year in the bloc with RSV-related illness, with outcomes often more severe than in children due to under-diagnosis and higher complication rates.
On the FTSE 250, Costain shares jumped 9.5% after the construction and engineering firm said a new agreement with the trustees of its defined-benefit pension scheme has cleared the way for increased shareholder returns, including a GBP20 million share buyback this year.
The company also said it intends to almost double its cash dividend payments in 2026 from 2025, starting with the final dividend for 2025.
Also on the FTSE 250, Grainger was up 1.1% after saying its Connected Living London joint venture with Places for London, the property arm of Transport for London, has agreed to forward-fund and acquire a 195-home build-to-rent scheme in Chiswick, west London.
The development, to be delivered by housebuilder Barratt Redrow, which rose 0.7%, has detailed planning consent and regulatory approval to begin construction. It will provide 195 rental homes, including 95 discounted market rent units, alongside commercial space and resident amenities such as co-working facilities and a gym.
The purchase price is GBP68.4 million, with Grainger funding 51% under the joint venture structure. Returns are expected to be in line with Grainger's targets for London schemes, and the company will also receive asset management fees.
Among smaller caps, Nanoco shares dropped 14% after the quantum dots maker said it is no longer actively seeking a buyer and will instead focus on investing in its own business while cutting costs.
Nanoco said the sale process is unlikely to deliver a "compelling transaction" compared to pursuing a standalone strategy.
The company said Chief Financial Officer Liam Gray will become interim chief executive officer, the board will be reduced by two members, Jalal Bagherli will move to an executive role from non-executive chair, and Chief Executive Dmitry Shashkov will leave in February as part of the cost reduction programme.
Nanoco said it will aim to cut monthly cash operating costs to GBP300,000 to GBP400,000 and confirmed it has ended the sale process.
S4 Capital shares surged 39% after the digital advertising company said full-year 2025 trading is ahead of its revised guidance and that net debt will be "significantly below" consensus expectations.
The company, founded by former WPP boss Martin Sorrell, said liquidity has improved. It now expects like-for-like net revenue to fall 8.5% from GBP754.6 million in 2024, delivering an operational Ebitda margin of around 12%.
This compares with analyst expectations for GBP664 million in net revenue, a roughly 12% decline, and GBP75 million in operational Ebitda, versus GBP87.8 million achieved in 2024. Net debt is now expected to be significantly below the GBP133 million consensus and beneath the previously guided GBP100 million to GBP140 million range.
Markets are bracing for what is expected to be the main theme of the week, with Big Tech earnings from four of the so-called Magnificent Seven. Microsoft, Meta Platforms and Tesla report on Wednesday, followed by Apple on Thursday.
Still to come on Monday's economic calendar is US durable goods orders.
By Eva Castanedo, Alliance News reporter
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