London, Jan 7, 2026, 10:52 GMT — Regular session
UK shares slipped on Wednesday, with the FTSE 100 down 0.7% at 10,054.34 points by 1052 GMT. BP and several miners were among the heaviest drags after the benchmark’s recent run of records. Hargreaves Lansdown
The index only logged its first close above 10,000 on Monday at 10,004.57, led by precious-metal miners and defence stocks after the U.S. capture of Venezuelan President Nicolas Maduro. The UK stock market forecast for 2026 now hinges on whether that geopolitical bid and expectations of Bank of England easing can outlast swings in oil and risk appetite. Reuters
The Bank Rate, the Bank of England’s key interest rate, stands at 3.75% and the next policy decision is due on Feb. 5. For the FTSE 250, which is more tied to the domestic economy, a turn in rate expectations can matter as much as earnings. Bank of England
Oil moved back into focus after U.S. President Donald Trump said Washington had struck a deal to import $2 billion worth of Venezuelan crude, which investors expected to increase supplies. Shell fell 2.4% and BP slid 3.1% by 0920 GMT, dragging the European energy sector lower. “Even if momentum sometimes breaks, markets are premised on an operating environment that is supportive,” said Richard Flax, chief investment officer at Moneyfarm. Reuters
Brent fell 0.6% to $60.35 a barrel by 0928 GMT and U.S. WTI was down 0.9% at $56.61, extending the previous session’s declines. UBS analyst Giovanni Staunovo said the Trump post put “downward pressure” on crude earlier, while Morgan Stanley has estimated the market could tip into a surplus of as much as 3 million barrels per day in the first half of 2026. Reuters
UK data underscored the fragile backdrop: the S&P Global/CIPS construction PMI — a survey where readings below 50 signal contraction — came in at 40.1 in December. “Many firms cited subdued demand and fragile client confidence,” said Tim Moore, economics director at S&P Global Market Intelligence. Investing
Company news has also steered early-January trading. The FTSE 100 hit a record close on Tuesday after AstraZeneca announced a strategic collaboration with BostonGene, while Next and Ocado jumped on upbeat updates and a weaker pound helped exporters. The FTSE 250 rose 0.9% to its highest in nearly four years. Reuters
Next lifted its annual profit outlook for the fifth time after full-price sales rose 10.6% in the nine weeks to Dec. 27, but it warned growth would slow to 4.5% in its 2026/27 year as “pressures on employment” filter through. “This tough backdrop may make future upgrades harder to come by,” said Shore Capital analyst David Hughes. Reuters
Takeovers are another theme investors are tracking for 2026 after years of London-listed firms trading at discounts. Auction Technology said it rejected 11 approaches from its top shareholder FitzWalter Capital; the bids marked the first takeover interest announced in a UK-listed company in 2026. Reuters
But Wednesday’s pullback is a reminder that the FTSE’s heavy exposure to commodities can cut both ways if oil stays soft. Markets next turn to retailer updates from Tesco and Marks & Spencer on Thursday and Sainsbury’s on Friday, before official UK inflation data on Jan. 21 provides the next key read on pricing pressure and rate-cut bets. Reuters
