London, Jan 15, 2026, 10:55 GMT — Regular session
- By mid-morning, the FTSE 100 had climbed 0.45%, hitting a fresh high, while the FTSE 250 gained 0.7%
- Gains driven by asset managers and banks; Dunelm falls sharply after profit warning
- Investors digest UK growth figures while assessing the likelihood of Bank of England rate cuts
Britain’s FTSE 100 hit a fresh record on Thursday, climbing 0.45% by 1028 GMT. Strong corporate results buoyed asset managers and banks, offsetting a steep drop in Dunelm. The FTSE 250, focused on mid-caps, rose 0.7%, reaching its highest level in four years.
The rally matters because London’s gains have been driven mostly by a few sectors — financials, miners, and healthcare — and investors are pushing to see how much steam is left as rate-cut expectations tighten. A couple of sharp drops in individual stocks also serve as a reminder that the UK consumer hasn’t bounced back yet.
Official figures showed the economy expanded by 0.3% in November, lending some support to market sentiment. Yet on the ground, caution remains: “Firms are telling us they’re still cautious about investing and recruiting, meaning growth will stay limited for the foreseeable,” said Stuart Morrison, research manager at the British Chambers of Commerce. Deutsche Bank’s chief UK economist, Sanjay Raja, noted the economy might outperform forecasts in early 2026 once budget-related uncertainty fades. Reuters
Schroders announced its annual adjusted profit will hit at least 745 million pounds ($1 billion), a 24% jump, sending its shares higher. Panmure Liberum analysts said the unexpected update “shows clear progress on all fronts, well ahead of the market’s expectations.” Ashmore shares also climbed, boosted by strong net inflows as investors sought emerging-market exposure. London South East
Banks moved up too. Barclays, Lloyds, NatWest, and HSBC all saw gains, riding the wave of demand for lenders and brokers in early trading.
Not all sectors joined the rally. The precious-metals miners dropped as gold slipped back after hitting a record high in the prior session, dulling some of the stocks that pushed Wednesday’s record close.
Dunelm took a sharp hit, plunging 16.6% by 0845 GMT to its lowest level since April 2025. The homeware retailer warned that cautious consumer spending would drag full-year profit toward the lower end of market forecasts. CEO Clo Moriarty said the UK retail landscape remains “variable,” but highlighted actions taken after lessons from the first half, including targeted efforts to boost availability. Peel Hunt’s John Stevenson flagged intense discounting from rivals around Black Friday. Reuters
Elsewhere, Burberry lagged alongside other luxury shares in Europe. Oxford Biomedica surged after confirming an unsolicited all-cash bid from funds managed by EQT. Wizz Air climbed following its CEO’s upgrade to the carrier’s growth forecast for the fiscal year.
The record streak makes the market fragile ahead of the next macro report. Any inflation upside or a fresh shift in global rates risks deflating banks and UK rate-sensitive stocks. Meanwhile, profit warnings from Dunelm continue to weigh on consumer shares.
Investors now turn their attention to UK consumer price inflation figures for December 2025, set for release on Jan. 21. The spotlight then shifts to the Bank of England’s policy decision and updated forecasts due Feb. 5.
