London, January 20, 2026, 08:48 GMT — Regular session
- Shares of 3i Group slipped roughly 1.5% in early London trading following Monday’s steep decline
- Risk aversion in Europe continues to weigh on financial and alternative-asset stocks
- Traders are focused on tariff news ahead of 3i’s next update, set for January 29
Shares of 3i Group plc (III.L) dropped 1.5% to 3,203 pence by 0834 GMT, down from an opening price of 3,217 pence. The stock touched a low of 3,185 pence, with about 54,000 shares changing hands early on. (London South East)
European stocks slipped again, rattled by U.S. President Donald Trump’s ongoing tariff threats. By 0803 GMT, the STOXX 600 had fallen 0.7%, deepening Monday’s losses. (Reuters)
Britain’s latest labour data brought fresh concerns. Payrolls dropped by 43,000 in December, marking the steepest monthly decline since November 2020. At the same time, private-sector wage growth eased, according to figures released Tuesday. ONS Director of Economic Statistics Liz McKeown highlighted that job losses over the past year were mainly in retail and hospitality. (Reuters)
3i dropped 3.24% on Monday, finishing at 32.52 pounds and lagging behind the broader market. The stock closed nearly 28% off its 52-week peak, with about 1.7 million shares traded—below its 50-day average, according to MarketWatch data. (MarketWatch)
The mood turned risk-off after Trump warned of new tariffs on Britain and seven other European countries, effective February 1. He said those duties would jump to 25% by June 1 unless the U.S. gets the green light to buy Greenland. (Reuters)
Investors in 3i often pay closer attention to valuation metrics than daily news. Currently, the stock trades at a roughly 18% premium to its estimated net asset value—the per-share value of its portfolio. This premium could become a risk if investors start demanding a wider margin for holding private assets. According to Hargreaves Lansdown, the estimated NAV stands at about 2,842 pence. (Hargreaves Lansdown)
In its half-year results last November, 3i reported that its long-term asset Action kept trading well, and that it had boosted its stake to 62.3%. CEO Simon Borrows tempered expectations on new deals, saying the group is “cautious” about deploying capital amid what looks like a tough environment ahead. (Investegate)
The squeeze wasn’t limited to 3i. Shares of Intermediate Capital Group, another alternative asset manager listed in London, fell 2.18% to 1,978 pence, according to the company’s share price display. (ICG)
3i is facing two shifting factors that don’t always align. Slower wage growth could strengthen bets on Bank of England rate cuts, generally boosting asset valuations. Yet, trade tensions that weigh on growth may still dampen risk appetite and compress premiums.
The next hurdle for the story is straightforward: numbers. 3i’s upcoming checkpoint is its Q3 performance update on January 29, with investors keen to gauge new insights on portfolio value and trading at Action. (3i)
Traders will also watch tariff news closely as the February 1 deadline approaches, while gauging if Tuesday’s jobs report strengthens bets on rate cuts.
