Add thelocalreport.in As A Trusted Source
The FTSE 100 shook off a weak start on Wednesday to close slightly higher following the US President’s confirmation Donald Trump Said he would not use force to control Greenlandbut insisted that the United States must still have “ownership” of it.
Kathleen Brooks, director of research at XTB, said Trump’s speech in Davos, Switzerland, had two important implications for the market.
“First of all, Trump will not use force to seize Greenland. Secondly, Trump hopes that the economy will heat up and drive U.S. stocks northward,” she said.
The FTSE 100 index closed up 11.31 points, or 0.1%, at 10,138.09 points.
The FTSE 250 index closed up 113.42 points, or 0.5%, at 23,071.29 points. Purpose The stock closed up 7.45 points, or 0.9%, at 808.59 points.
“Unless I decide to use excessive force and force and, frankly, we’re unstoppable, we’re probably going to get nothing, but I’m not going to do that,” Trump said in a wide-ranging and often rambling speech at the World Economic Forum.
But he demanded “immediate” talks on Washington’s acquisition of Greenland and renewed his push to wrest control of the autonomous territory from NATO ally Denmark.
“Only the United States can protect this huge land, this huge ice sheet, develop it and improve it,” Trump told world leaders.
“That’s why I’m seeking immediate negotiations to revisit the U.S. acquisition of Greenland.”
Mr. Prime Minister Keir Starmer He earlier told parliament he would not give in to Trump’s pressure over Greenland’s future.
He told MPs: “I will not give in. The UK will not compromise our principles and values on Greenland’s future under the threat of tariffs. That is my clear position.” London Thursday.
Trump has threatened to impose tariffs on Britain and other European countries that oppose his claims on Greenland.
“Greenland is still likely to be an issue for financial markets as Trump has indicated that he wants to gain control of Greenland and will immediately begin negotiations to achieve this. However, today’s speech suggests that NATO is not currently under direct threat,” Ms Brooks said.
European stock markets were mixed on Wednesday. Paris’ CAC 40 index closed up 0.1%, while Frankfurt’s DAX 40 index closed down 0.6%.
Financial markets were higher in New York at the close in London.
The Dow Jones Industrial Average rose 0.9%, the S&P 500 gained 0.9% and the Nasdaq Composite gained 1.0%.
Bond markets are calming down after Tuesday’s big swings. The U.S. 10-year Treasury note yield was at 4.27%, down from 4.28% on Tuesday. The U.S. 30-year Treasury bond yield was at 4.89%, narrowing from 4.91%.
Back in London, analysts played down the unexpected spike in UK inflation, calling it a “blip”.
Analysts at Lloyds Bank said: “Due to the late release of last year’s budget, December’s data is likely to see a rebound as December’s data shows an increase in tobacco tariffs rather than November’s data (as in 2024).”
The bank added: “The partial unwinding of ‘early’ Black Friday discounts seen in the November data also appears to be responsible for the price increases, as well as base effects related to last month’s sharp increase in airfares (relative to more modest increases in December 2024).”
Data released by the Office for National Statistics (ONS) on Wednesday showed that overall consumer price index (CPI) inflation accelerated in December, with CPI rising by 3.4% year-on-year, higher than November’s 3.2%. It was ahead of the 3.3% consensus cited by FXStreet.
It was the first increase in headline inflation since July, when the annual rate rose to 3.8% from 3.6% in June. The figures for October and November were 3.6% and 3.2% respectively, below consensus forecasts at the time.
The ONS said alcohol, tobacco and transport made the largest contributions to the monthly change.
Core CPI, which excludes energy, food, alcohol and tobacco, was unchanged at 3.2%, better than the 3.3% consensus.
The annual rate of commodity CPI rose from 2.1% to 2.2%, and the annual rate of service CPI rose from 4.4% to 4.5%, but it was lower than the market consensus of 4.6%.
RBC Capital Markets expects December’s “blip” to subside significantly in the first half of 2026.
“So not only did December’s results bring services and headline CPI inflation broadly in line with the Bank of England’s November forecast, but the main upside contribution to headline and CPI was also concentrated in non-core or more volatile categories,” the broker said.
Deutsche Bank expects inflation to fall sharply in January, to close to 3% year-on-year.
By spring, the bank expects the Bank of England’s 2% inflation target to be “on track to be achieved”.
At the close in London on Wednesday, the pound was quoted at $1.3437, down from $1.3462 on Tuesday.
The euro was trading lower at $1.1707 and at $1.1733. The USD/JPY exchange rate rose from 157.95 yen to 158.18 yen.
Within the FTSE 100, trading reports boosted Burberry but weighed on Experian.
Luxury goods maker Burberry rose 5.0% after reporting higher comparable store sales during the holiday season and forecasting its annual adjusted operating profit to be in line with analysts’ consensus forecasts.
Comparable sales by region for the third quarter of fiscal 2026 ended March 28 increased 6% in Greater China and 5% in Asia Pacific. The Americas region rose 2%. Additionally, comparable sales in Europe, the Middle East, India and Africa were flat due to lower visitor spending.
Mining company Rio Tinto rose 5.2% after a well-received fourth-quarter production update, while Glencore, which Rio Tinto is trying to acquire, rose 3.7%.
Bank of America said it believed “GlenTinto” – if a deal was struck – would provide “compelling value.”
Rio Tinto has until February to finalize a proposed takeover of Glencore.
Insurer Admiral fell 4.2% after Goldman Sachs downgraded its rating to sell from buy, while Experian fell 4.9% despite announcing synchronized trading.
Within the FTSE 250, shares in Currys rose 7.7% as the electrical appliances retailer raised its profit guidance, while Premier Foods gained 7.1% after it said full-year profits were at their highest level.
But pub chain JD Wetherspoon failed to please investors, with its shares falling 8.1% as it said higher costs offset rising sales.
Brent crude oil fell to $64.82 a barrel on Wednesday, down from $64.89 late Tuesday night.
Gold was at $4,833.66 an ounce on Wednesday, another record high, up from $4,742.56 on Tuesday.
The biggest gainers on the FTSE 100 were Rio Tinto, up 327.00 pence, to 6,641.00 pence; Burberry, up 61.00 pence to 1,280.00 pence; Bunzl, up 97.00 pence to 2,086.00 pence; and Anglo American, up 158.00 pence. pence, to 3,401.00 pence; and JD Sports fashion, up 3.78 pence, to 82.06 pence.
The biggest losers on the FTSE 100 were Experian, down 157.00 pence, to 3,070.00 pence; Admiral Group, down 128.00 pence to 2,948.00 pence; London Stock Exchange, down 198.00 pence to 8,782.00 pence; Rolls-Royce, down 26.00 pence. pence, at 1,255.00 pence; Sage Group, down 16.50 pence, at 1,025.00 pence.
Thursday’s global economic calendar includes public sector net borrowing data, gross domestic product data, initial jobless claims and personal consumption expenditure data.
Thursday’s UK corporate calendar contains trading reports from discount retail chain B&M Europe Value Retail and trading platform AJ Bell.
Alliance News Feed