London, 12 January 2026, 10:58 GMT — Regular session
- UK stocks slipped following last week’s record highs, dragged down by weakness in banks while sterling gained ground.
- Barclays slipped as attention returned to a proposed 10% cap on credit-card interest rates.
- Miners climbed as gold hovered near record highs; investors now turn to upcoming data and earnings reports.
Britain’s FTSE 100 slipped in early Monday trade, pulled lower by a steep drop in Barclays after investors weighed new U.S. policy risks alongside a firmer pound. By 0823 GMT, the blue-chip index was down 0.1%, while sterling gained 0.3% against the dollar, hitting roughly $1.34.
London stocks kicked off the week at record levels, with the FTSE 100 closing Friday at an all-time high. The rally, fueled by deal chatter around Glencore and positive cues from U.S. jobs data, has left little room for surprises.
The larger story is worldwide: investors are growing uneasy about the shifting political landscape in Washington. Goldman Sachs chief economist Jan Hatzius noted the recent events have raised “more concerns that Fed independence is going to be under the gun,” but he still believes the central bank will rely on data to guide its decisions. Reuters
Barclays slid about 4% after U.S. President Donald Trump pushed for a one-year cap on credit-card interest rates at 10%. Gold, seen as a “safe haven” asset during market jitters, kept precious-metal miners buoyant—Fresnillo gained 6%, Endeavour Mining rose 2%. Hargreaves Lansdown analyst Matt Britzman warned that a 10% cap “would upend the basic economics of the industry.” The Standard
Barclays’ U.S. cards business accounts for roughly 11% of group profits, with its American card operations ranking ninth in the market, Britzman noted.
How a cap might actually function — or whether it would hold up — remains uncertain. Some analysts argue a rate limit would probably require Congress, going beyond presidential powers. J.P. Morgan’s Vivek Juneja warned it “could push consumers towards more expensive debt.” Others cautioned lenders might just tighten credit availability instead. Reuters
Outside the banking sector, stock-specific updates sparked pockets of buying. Oxford Nanopore climbed 8.1% after forecasting 2025 revenue between £223 million and £224 million. British Land fell 2.9% following the announcement that CEO Simon Carter is stepping down. JD Sports rose 1.8% after unveiling plans for “one-click purchases” using AI platforms. London South East
European banks took the brunt of the selling, dragging the regional bank index down 1.1%. HSBC slid nearly 1% as concerns over credit-card fee caps, initially a U.S. issue, started to ripple across the continent .
Gold reinforced its defensive appeal, with spot prices climbing over 1% to reach a record $4,563.61 an ounce. Investors sought refuge amid ongoing geopolitical strains and concerns about policy uncertainty.
Coming up, a packed slate of key events: the U.S. Bureau of Labor Statistics will drop December’s CPI data at 08:30 ET Tuesday. On that very day, JPMorgan is expected to report earnings and hold its conference call. Then on Thursday at 07:00, the UK will release its official November GDP monthly estimate.
