London, Jan 21, 2026, 11:20 GMT — Regular session
London shares remained largely unchanged Wednesday, with the FTSE 100 (.FTSE) slipping just 0.1% to 10,115.11. Investors balanced persistent inflation concerns against gains in miners and retail stocks. The 10-year gilt yield, a key government borrowing rate, fell to roughly 4.45%. (Reuters)
Inflation was the headline. UK consumer price inflation ticked up to 3.4% in December from 3.2% the month before, complicating any clear path on rate cuts as the Bank of England pushes to hit its 2% target. Adam Deasy at PwC called it “a speed bump rather than a roadblock.” (Reuters)
Risk appetite is already fragile. Investors shook by fresh tariff threats linked to President Donald Trump’s Greenland ambitions sparked a broad selloff Tuesday, hitting stocks, long-term U.S. Treasuries, and the dollar. “Global investors are taking these threats seriously,” said Jack Ablin at Cresset Capital. (Reuters)
Sterling hovered near $1.3433 following the inflation report, with traders watching bonds after the week’s earlier volatility. Francesco Pesole from ING noted the pound was “less exposed to the U.S. sell-off,” but cautioned that “bond volatility and debt worries are still there.” (Reuters)
Burberry (BRBY.L) topped the blue-chip list after posting holiday-quarter sales that surpassed forecasts, driven by younger customers in China. Comparable store sales — measuring growth at outlets open for at least a year — climbed 3%, outpacing the company’s consensus of 2%. Revenue hit 665 million pounds, sending shares up 4.4% by 0940 GMT. (Reuters)
Rio Tinto (RIO.L) rallied after beating forecasts for fourth-quarter iron ore and copper output, drawing attention amid revived merger talks with Glencore (GLEN.L) late last year. The miner faces a Feb. 5 deadline under UK takeover rules to declare a formal bid for Glencore or back off. Analyst Glyn Lawcock at Barrenjoey described the results as a “solid” quarter. (Reuters)
Experian (EXPN.L) posted an 8% increase in third-quarter organic revenue, excluding currency effects and acquisitions, driven by a rebound in U.S. lending alongside strong demand for fraud-prevention services. The company maintained its full-year forecast, expecting total revenue to climb 11% with organic growth holding steady at 8%. (Reuters)
Rate-sensitive stocks took a hit again. Experian slipped 4.9% to 3,069p. Lloyds (LLOY.L) and Barclays (BARC.L) each dropped roughly 1.6%. The FTSE 250 (.FTMC) managed a 0.23% gain. Pearson (PSON.L), however, climbed after announcing a fresh £350 million buyback plan. (London South East)
Midcaps saw some turbulence. Pub operator J D Wetherspoon (JDW.L) dropped after issuing a warning that fiscal 2026 profits might take a hit as costs surged. Energy expenses and property taxes were key drivers, with a 45 million pound rise in costs. The full-year result is expected to come in “slightly below” fiscal 2025. (Reuters)
Bullion prices jumped again, giving miners a lift. Spot gold climbed past $4,800 an ounce, reaching a new high of $4,887.82. Investors moved in, chasing safety amid ongoing trade and geopolitical turmoil. “Markets love uncertainty,” noted Jamie Dutta of Nemo.money. (Reuters)
The fallout from Tuesday’s events lingered on Wednesday. The FTSE 100 dropped 0.72%, marking its sharpest decline in nearly two weeks, after Trump threatened tariffs on eight European nations — Britain included — unless the U.S. gains permission to buy Greenland. AstraZeneca (AZN.L) took a hit after announcing it would delist its American depositary shares and debt securities from Nasdaq. (Reuters)
Deal chatter has stood out as a rare bright spot. Zurich Insurance (ZURN.S) proposed a 1,280 pence-per-share bid for Beazley (BEZ.L), pegging the London-listed insurer’s value at roughly 7.67 billion pounds. The move sparked a boost in rival stocks amid speculation of more industry consolidation. (Reuters)
The day’s balance can shift quickly. If tariff threats become actual policy, or inflation proves stickier than expected, banks and consumer stocks might suddenly fall out of favor in an already jittery market.
Next on the docket: eyes are on Trump’s speech at the World Economic Forum in Davos later Wednesday, along with the Bank of England’s rate decision set for Feb. 5. (Reuters)
