London, Jan 6, 2026, 10:56 GMT — Regular session
- The FTSE 100 rose 0.6% to 10,061 points, extending gains after the index’s first close above 10,000 a day earlier. 1
- Next climbed 3.1% after lifting its annual profit outlook on stronger-than-expected Christmas sales. 2
- Investors weighed fresh evidence of rising UK services-sector price pressures against expectations for further Bank of England rate cuts in 2026. 3
The UK’s FTSE 100 edged higher on Tuesday and held above the 10,000 mark, helped by a jump in Next after the clothing retailer raised its profit outlook. The blue-chip index was up 0.6% at 10,061 points, according to LSEG data. 1
The move keeps a strong start to 2026 intact for London equities, after the FTSE 100 notched its first ever close above 10,000 on Monday. Strategists have pointed to heavyweight exposure to miners, energy and banks — sectors that tend to benefit when commodity prices are firm and interest rates are easing. 4
Rate expectations remain a key swing factor. A closely watched survey showed UK services firms faced a renewed pickup in cost pressures late last year, a reminder that sticky inflation could limit how quickly the Bank of England can cut borrowing costs. 3
Next (NXT.L) reported a 10.6% rise in full-price sales over the nine weeks to Dec. 27 and lifted its forecast for pretax profit to 1.15 billion pounds for the year to Jan. 31. The group said UK sales rose 5.9% while international sales jumped 38.3%, helped by improved stock availability and higher marketing spend. 2
“While we expect the excellent Next to continue to do better than most, this tough backdrop may make future upgrades harder to come by,” Shore Capital analyst David Hughes said. 2
Marks & Spencer (MKS.L), a key peer for the UK retail read-through, fell 1.4% and is due to update investors on trading on Thursday. Retailers are in focus as investors look for early signs on whether consumers can absorb higher employment-related costs flagged by companies and economists. 2
On the macro side, the final S&P Global UK Services Purchasing Managers’ Index (PMI) — a survey-based gauge where a reading above 50 signals expansion — was revised down to 51.4 for December from a preliminary 52.1. The report said input costs rose at the fastest pace since May and firms increased prices at the quickest rate since August, even as overall demand remained subdued. 3
Sterling’s strength added another cross-current for London’s internationally exposed blue chips. The pound was around $1.35 and near its highest since mid-September, supported by improved global risk appetite and easing concerns about Britain’s fiscal outlook. 5
Commodity-linked sectors stayed on traders’ screens after Monday’s record close, when precious metal miners surged and defence stocks jumped following the U.S. capture of Venezuelan President Nicolas Maduro, Reuters reported. Gold futures were up 0.6% and Brent crude futures were up 0.4% on Tuesday, while the UK 10-year yield hovered around 4.51%. 4
But the rally’s next leg may depend on whether inflation cools enough to keep the Bank of England on an easing path, and whether geopolitical risk continues to support safe havens and defence names. A firmer pound can also trim the value of overseas earnings for multinationals, a familiar headwind for the FTSE 100. 3
