London’s stock market heads into Tuesday, 23 December 2025, with traders bracing for a quiet session shaped by holiday-thinned liquidity, big moves in precious metals, and a final batch of key U.S. economic releases before Christmas.
Early indications from futures markets point to a muted open for the FTSE 100 after Monday’s pullback, with sentiment split between supportive global risk appetite and persistent concerns about the UK’s slowing growth backdrop. [1]
UK stocks in early trade: FTSE 100 expected near flat after Monday dip
Market pricing ahead of the London open suggested a small move lower for the UK’s blue‑chip FTSE 100, with one early call showing the index around 0.1% softer at the open (roughly 9,856–9,857) after ending Monday at 9,865.97. [2]
The tone is typical for the final full sessions before Christmas: fewer participants at desks, lighter volumes, and a higher chance of abrupt swings if any surprise headline hits. [3]
The global backdrop: precious metals surge, markets tread carefully into year-end
Global markets on 23 December were broadly supported by year‑end optimism, while safe-haven demand remained intense in precious metals. Reuters noted gains in global stocks alongside fresh strength in gold and silver, with investors looking toward delayed U.S. GDP data expected to show 3.3% annualised growth for Q3—plus other U.S. releases that typically influence cross‑asset sentiment. [4]
For UK equities, the global setup matters because the FTSE 100 is heavily exposed to international earnings and commodity-linked sectors. When dollar weakness and commodity strength combine, London often gets a relative tailwind through its miners and energy majors—even when domestic growth news looks soft.
Commodities in focus: gold’s record run and what it means for London-listed miners
Gold remained the headline driver, pushing deeper into record territory. One London market update pegged spot gold around $4,480/oz, underlining why precious-metals-linked shares have stayed in focus going into the holiday period. [5]
Reuters’ year-end market commentary has been even more explicit about the 2025 story: precious metals have been the standout “safety” trade, outperforming many traditional defensive assets during a year marked by geopolitical tension and recurring “bubble” fears in parts of the market. [6]
That matters for the UK market today because London hosts a deep bench of globally exposed mining names across gold, diversified metals and bulk commodities. When bullion is making fresh highs, it can cushion the FTSE 100—even if the rest of Europe is subdued.
UK economic picture: slow growth confirmed, consumers under pressure
The domestic macro narrative remains less inspiring than the UK market’s headline performance suggests.
Revised national accounts confirmed the UK economy grew just 0.1% in Q3 2025, with earlier growth revised down, and Reuters reported households saving less as tax increases squeezed real disposable incomes. The savings ratio fell to 9.5%, while consumer spending still rose 0.3%, the fastest quarterly increase in a year—an uneven mix that helps explain why investors remain selective across UK‑exposed sectors. [7]
Reuters also reported that the Bank of England has signalled expectations of no GDP growth in Q4, while broader expectations for 2026 UK growth have been lowered in some forecasts (Reuters cited a shift to 1.0% from 1.4%). [8]
In market terms, that keeps a spotlight on:
- domestically geared mid‑caps and consumer names (more sensitive to UK demand), and
- rate‑sensitive sectors (property, housebuilders, highly leveraged businesses), where the outlook hinges on how far borrowing costs fall in 2026.
Policy and calendar watch: next OBR forecasts set for 3 March 2026
Beyond day‑to‑day data, investors are also tracking how the UK’s fiscal signalling evolves into 2026.
Reuters reported that Finance Minister Rachel Reeves scheduled the next Office for Budget Responsibility (OBR) economic and public finance forecasts for 3 March 2026, as part of a shift toward fewer major fiscal events designed to reduce uncertainty for households and businesses. [9]
That date is already becoming a key marker for UK assets—especially gilts, sterling, banks and UK‑domestic equities—because fiscal credibility, growth assumptions and borrowing projections can meaningfully shift sector leadership.
Company news in London today: Pets at Home and HSBC in focus
Even in a quiet market, individual corporate headlines can move prices—especially in thin conditions.
Pets at Home appoints former Waitrose boss as new CEO
FTSE 250-listed Pets at Home announced that James Bailey, formerly managing director at Waitrose, will become chief executive effective 30 March 2026, with the chair continuing as interim boss until then. [10]
Leadership changes can be catalyst events for mid‑caps because they often bring strategic resets—particularly after periods of earnings volatility and investor scrutiny.
HSBC board change: senior independent director to step down
In the FTSE 100, HSBC drew attention after Reuters reported that senior independent director Ann Godbehere will retire from the board at the bank’s 2026 AGM, following a lengthy chair succession process that has been closely watched by governance-focused investors. [11]
For a heavyweight like HSBC, board dynamics matter not just for headlines but for market confidence in strategy execution—particularly as the bank continues to refine its footprint and capital allocation priorities.
A structural theme behind UK equities: the “bargain takeover market” narrative
One of the most discussed strategic backdrops to UK equities late in 2025 is M&A.
The Financial Times described 2025 as a year when foreign buyers stepped up acquisitions of British companies—$142bn by mid‑December, up 74% from 2024—while domestic M&A fell sharply (down 54% to $44bn), highlighting both the attraction of UK-listed assets and the ongoing debate around valuations, funding depth and London’s competitiveness. [12]
For investors, this theme has two competing implications:
- Supportive for valuations: takeover interest can place a floor under selected UK shares, particularly in sectors perceived as undervalued internationally.
- A warning sign: persistent domestic underinvestment and dealmaking driven mainly from abroad can reinforce concerns about the UK’s long-term capital market strength.
Either way, it remains a live narrative going into 2026—and a reason UK stock screens continue to feature prominently for global value and event-driven funds.
Analyst view: Santa rally hopes, but January risk remains
With markets approaching the final stretch of the year, “Santa rally” chatter is back—yet strategists are warning that the path may not be smooth.
In one market note cited in London coverage, Swissquote Bank’s Ipek Ozkardeskaya flagged the risk that trade frictions (including fresh tariff headlines) could weigh on European growth next year, while also noting that seasonal patterns still tend to favour upside into the turn of the year—though any correction may simply be deferred into January when liquidity returns and investors rebalance. [13]
For UK investors, the practical takeaway is to separate:
- calendar-driven flows (which can lift indices even without strong fundamentals), from
- 2026 earnings reality (where UK growth, global demand and rate paths will do the heavy lifting).
Trading hours: why liquidity is likely to get even thinner from here
The London Stock Exchange’s holiday schedule reinforces the “light volume” setup for UK markets:
- Wednesday, 24 December 2025: half-day, with the closing process commencing from 12:30 London time [14]
- 25–26 December: markets closed
That typically compresses risk-taking into fewer hours, increases the impact of single-stock news, and can amplify commodity- or FX-driven rotations in an index like the FTSE 100.
What to watch for the rest of today
With UK data light, the market’s direction on 23 December is likely to hinge on a small set of external drivers and headline risks:
- U.S. macro prints (including the delayed GDP release and inflation-sensitive indicators) that can move the dollar, rates, and global equity sentiment [15]
- Gold and broader commodities, where record prices are shaping sector leadership in London [16]
- Sterling and gilt moves, which can quickly change the outlook for UK domestics, banks, and rate-sensitive sectors in thin trading [17]
- Stock-specific headlines (board changes, CEO appointments, M&A rumours) that often have outsized effects near year-end [18]
Bottom line: UK stocks look steady, but today’s “quiet” session could still surprise
The UK stock market today is less about a single domestic data point and more about the late‑December mix of global cues: a softer dollar, record precious metals, and thin liquidity that can turn small headlines into bigger moves.
For now, the FTSE 100 appears set for a cautious, near‑flat session—supported by commodity strength and global year‑end optimism, but held back by the UK’s slow-growth reality and the ever-present risk that low liquidity magnifies volatility. [19]
References
1. www.lse.co.uk, 2. www.lse.co.uk, 3. www.proactiveinvestors.com, 4. www.reuters.com, 5. www.standard.co.uk, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.standard.co.uk, 11. www.reuters.com, 12. www.ft.com, 13. www.proactiveinvestors.com, 14. www.londonstockexchange.com, 15. www.reuters.com, 16. www.standard.co.uk, 17. www.reuters.com, 18. www.reuters.com, 19. www.lse.co.uk
