London, Jan 13, 2026, 07:39 GMT
- FTSE 100 ended 0.16% higher, hitting a new record; FTSE 250 dipped 0.06%
- Gold surged past $4,600 an ounce, sending precious metal miners sharply higher
- Bank shares dropped following Trump’s call to cap credit-card rates at 10% for one year
Britain’s FTSE 100 hit a record closing high Monday, boosted by mining shares amid gold’s rally to new peaks. Banks, however, pulled back after U.S. President Donald Trump proposed capping credit-card interest rates. The blue-chip index climbed 0.16%, while the mid-cap FTSE 250 slipped 0.06%. 1
The split revealed the market’s current mood: favor the tough, shun the politically sensitive. Investors flocked to safe-haven assets — the usual refuge in uncertain times — after the White House ramped up criticism of Federal Reserve Chair Jerome Powell and the dollar weakened.
Sterling gained ground against the dollar, putting pressure on an index loaded with exporters. Yet miners carried the load. It’s a classic FTSE move: commodities often mask the impact of currency swings, if only temporarily.
Gold surged past $4,600 for the first time, then pulled back slightly, supporting London-listed miners and the broader resources sector. “Gold serves as a catch-all, and a default hedge of last resort for fear and uncertainty,” said Christopher Louney, gold strategist at RBC Capital Markets. 2
In banking circles, the debate centered less on the precise language of Trump’s plan and more on its impact on credit. “A one-size-fits-all government price cap may sound appealing, but it wouldn’t help Americans,” said Richard Hunt, executive chairman of the Electronic Payments Coalition, which represents financial institutions and payment networks. 3
Yet the factors that boosted the FTSE could quickly shift. If bullion slips from its peaks or tensions around the Fed ease, miners might lose their gains. A stronger pound could also weigh on earnings when converted back into sterling.
UK hiring remained weak behind the scenes. Jon Holt, KPMG’s chief executive and UK senior partner, noted that “many firms continue to pause hiring and are flexing where they can by using temporary staff,” following a recruiters’ survey that revealed placements dropped for the 39th consecutive month in December. 4
Shares saw sharp moves in some names. IQE surged 41.4% after it forecast revenue and adjusted core profit—similar to EBITDA—at the high end of estimates. Oxford Nanopore climbed 9.3%, boosted by an upbeat revenue growth outlook. Plus500 rose 5.4% after beating forecasts, driven by expansion into U.S. futures, contracts that lock in prices for future trades. 5
Over in Europe, the STOXX 600 hit another record, and Germany’s DAX notched its 10th straight gain. “Mining stocks will be back in the spotlight,” said Ipek Ozkardeskaya, senior market analyst at Swissquote, highlighting a so-called “debasement” trade—where investors wager that paper currency will lose value, boosting metals and other hard assets. 6
Global cues remained volatile early Tuesday. Japan’s Nikkei climbed to a fresh high while the yen weakened. Markets now brace for U.S. consumer price data and the kickoff of big-bank earnings season. 7
The FTSE’s climb builds on a major psychological milestone. The index cracked 10,000 on Jan. 2, following an almost 22% surge in 2025. AJ Bell’s Danni Hewson described it as “nice to be going into 2026 with a good news story.” 8
