Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
London open: FTSE falls ahead of busy week
London stocks fell in early trade on Monday as investors eyed a busy week that includes rate announcements from the US Federal Reserve and the European Central Bank, and earnings from more than half the ‘Magnificent 7’.
At 0840 GMT, the FTSE 100 was down 0.4% at 8,469.17.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “There’s a lot riding on this week’s earnings reports for big tech, with updates due from Meta, Microsoft, Apple and Tesla. There’s a lot of upside already sewn into expectations, which leaves plenty of room for disappointment. The S&P 500 is set to start the week with a case of the jitters, as investors assess the threat from Chinese AI startups.
“The small Chinese research and engineering firm DeepSeek’s AI Chatbot has proved so popular it jumped into the top spot on US iOS App, usurping Open AI’s ChatGPT. DeepSeek threatens to spook big tech and has already sent shivers through Silicon Valley by releasing details about how to build large language models more cheaply using low-cost Chinese chips. While they don’t offer the cutting-edge tech of Nvidia’s graphics processing units, the efficacy of the budget version and the willingness of DeepSeek to share its know-how may start to chip away at Nvidia’s dominance. DeepSeek has access to deep wells of Chinese data and has deep pockets. It’s funded by hedge fund manager Liang Wenfeng and is believed to be on the hunt for the best AI talent.
“While Nvidia‘s latest chips are still far superior in terms of performance, with cheaper rivals making progress, there is likely to be a knock-on effect globally, with competing US and Chinese spheres of AI influence set to emerge.”
In UK equity markets, miners retreated after weak Chinese manufacturing data, with Anglo American, Glencore and Antofagasta all weaker.
Dr Martens edged lower even as the iconic boot maker backed its full-year guidance and reported an uptick in revenue thanks to a solid performance from the ecommerce segment.
On the upside, British American Tobacco was the standout gainer on the FTSE 100 after an upgrade to ‘buy’ at UBS.
WH Smith rallied as it confirmed it was looking at potential strategic options for its high street stores, including a possible sale of the “profitable and cash-generative” unit.
The company said it had become a “focused global travel retailer” over the past decade. Its travel business now has more than 1,200 stores across 32 countries, providing three-quarters of group revenue and 85% of trading profit.
Diversified Energy advanced as it announced the acquisition of Maverick Natural Resources for $1.28bn. It said the deal would strengthen its position in multiple basins, including the Permian and Western Anadarko.
Top 10 FTSE 100 Risers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
British American Tobacco Plc | +3.69% | +111.00 | 3,119.00 |
| 2 |  |
Gsk Plc | +2.43% | +33.00 | 1,389.50 |
| 3 |  |
Vodafone Group Plc | +1.64% | +1.10 | 68.10 |
| 4 |  |
Haleon | +1.59% | +5.90 | 377.50 |
| 5 |  |
Sse Plc | +1.47% | +23.00 | 1,583.50 |
| 6 |  |
Tesco Plc | +1.44% | +5.20 | 365.20 |
| 7 |  |
Sainsbury (j) Plc | +1.42% | +3.60 | 256.40 |
| 8 |  |
National Grid Plc | +1.38% | +13.20 | 968.20 |
| 9 |  |
Segro Plc | +1.22% | +8.60 | 716.40 |
| 10 |  |
Severn Trent Plc | +1.11% | +27.00 | 2,464.00 |
Top 10 FTSE 100 Fallers
| Sponsored by Plus500 |
|
| # | Name | Change Pct | Change | Cur Price | |
|---|---|---|---|---|---|
| 1 |  |
Anglo American Plc | -6.09% | -154.50 | 2,381.00 |
| 2 |  |
Scottish Mortgage Investment Trust Plc | -3.68% | -39.00 | 1,020.00 |
| 3 |  |
Halma Plc | -3.47% | -101.00 | 2,811.00 |
| 4 |  |
Ashtead Group Plc | -3.37% | -182.00 | 5,220.00 |
| 5 |  |
South32 Limited | -3.21% | -5.70 | 172.00 |
| 6 |  |
Rolls-royce | -3.20% | -19.40 | 586.20 |
| 7 |  |
Glencore Plc | -2.90% | -10.90 | 364.50 |
| 8 |  |
Antofagasta Plc | -2.79% | -49.00 | 1,705.50 |
| 9 |  |
Wise Plc | -2.37% | -26.00 | 1,071.00 |
| 10 |  |
Ferguson Enterprises Inc. | -2.20% | -320.00 | 14,220.00 |
US close: Stocks end lower, snap four-day rally
US stocks finished lower on Friday, with the S&P 500 pulling back from record highs, as investors reacted to data showing that private sector growth slowed to a nine-month low.
The Dow and S&P 500 both closed 0.3% lower, while the Nasdaq slipped 0.5%, with all three benchmarks snapping a four-day winning streak. The S&P 500 in particular was retreating after hitting a new closing high of 6,118.71 on Thursday.
However, despite Friday’s losses, major indices were on track to deliver a second consecutive winning week on Friday, with Donald Trump’s return to the White House giving investors confidence regarding the state of the US economy thanks to his pro-business approach to governing.
“The focal point shifts to the upcoming Fed meeting next week, with minimal expectations of a significant shift in the cautious stance due to recent political changes and the absence of updated projections. [December’s] robust employment report further supports the anticipation of a status quo,” said Patrick Munnelly, partner of market strategy at Tickmill Group.
Economic data barrage
On the macro front, the S&P Global US manufacturing PMI increased to 50.1 in January, according to a preliminary reading, up from 49.4 in December and ahead of market expectations for a reading of 49.7, pointing to a modest improvement in manufacturing conditions after six months of decline.
The services PMI, on the other hand, fell from 56.8 to 52.8 in January, missing expectations for only a slight fall to 56.5, marking the softest pace of expansion since April 2024.
As a result, the composite PMI – an overall indicator of private sector activity – fell to 52.4 in January, down from December’s 32-month high of 55.4 and the lowest rate of growth in nine months.
Elsewhere, existing home sales rose by 2.2% to a seasonally adjusted annualised rate of 4.38m in December, according to the National Association of Realtors, the highest reading since February 2024.
Finally, the University of Michigan’s consumer sentiment index decreased to 71.1 in January, down from 74 in December and well below the 73.2 forecast.
Market movers
Shares in semiconductor outfit Texas Instruments dropped nearly 8% on the back of disappointing quarterly earnings guidance.
Boeing shares were lower after the aerospace group warned of a significantly larger-than-expected fourth-quarter loss of around $4bn – nearly three times the size forecasted by analysts.
US-listed shares of Danish pharmaceutical giant Novo Nordisk jumped 8% thanks to positive headline results from early-stage trials into one of its weight loss drugs.
Meanwhile, credit card giant American Express underwhelmed with record annual revenues of $65.9bn, up 9% year-on-year thanks to solid holiday spending, as shares slipped.
Monday newspaper round-up: Four-day working week, Diageo, mortgage rules
The government is under growing pressure to get momentum back into the economy amid warnings that businesses plan to cut jobs and raise prices, while millions of families believe their finances will worsen this year. Before a major speech this week by the chancellor, Rachel Reeves, designed to restate Labour’s commitment to improving the economy, the CBI said private sector firms were urgently assessing their budgets to offset measures announced in last October’s budget. – Guardian
Two hundred UK companies have signed up for a permanent four-day working week for all their employees with no loss of pay, in the latest landmark in the campaign to reinvent Britain’s working week. Together the companies employ more than 5,000 people, with charities, marketing and technology firms among the best-represented, according to the latest update from the 4 Day Week Foundation. – Guardian
The average advertised salary has crossed £40,000 for the first time as employers “loosen their purse strings” for the right candidate. Demand for skilled staff combined with employer hesitancy around hiring pushed average salaries to a record high in December, according to jobs search engine Adzuna. – Telegraph
The owner of Guinness has denied reports it is exploring an £8bn sale of the brand as the Irish stout enjoys a surge of popularity. Diageo, the FTSE 100 drinks giant, said on Sunday it had “no intention to sell” after reports that it was considering disposing of or spinning off the Dublin-headquartered business. – Telegraph
A loosening of post-financial-crisis mortgage rules after government pressure on regulators to boost economic growth would help tens of thousands more people to buy their first homes, a new analysis has found. Planned reforms to mortgage rules could allow about 76,000 more first-time buyers to borrow large enough loans to get on to the property ladder, but easing the rules could increase home repossessions and add to housing market inflation, experts said. – The Times
