London midday: FTSE pulls back after toying with 10,000

(Sharecast News) - London stocks were mixed at lunchtime on Friday, as markets recovered from a weaker end to last year and continued to hover near record territory, with the FTSE 100 having briefly breached the 10,000-point mark earlier in the session.

By 1200 GMT, the FTSE 100 was up 0.52% at 9,983.34, while the more domestically-focussed FTSE 250 slipped 0.26% to 22,411.54.

The blue-chip index had earlier touched an intraday record of 10,052.

Axel Rudolph, senior technical analyst at IG, said the move above 10,000 was "a powerful signal for UK markets," reflecting "ongoing confidence in earnings resilience, attractive valuations and the growing appeal of UK equities to international investors at a time when policy headwinds are beginning to ease."

He added that while performance may be "choppier in 2026," the index remained "fundamentally supported by globally diversified earnings, strong cash generation and the prospect of a more accommodative Bank of England."

Trading volumes remained thin as many investors stayed on the sidelines over the New Year holiday, with little in the way of major corporate or macroeconomic catalysts.

Attention was already shifting to next week's data calendar, where US jobs numbers were expected to set the tone for global markets.

Dan Coatsworth, head of markets at AJ Bell, said the milestone had capped "a tremendous year for UK shares," adding: "It's time to break out the champagne as UK stock markets have delivered a New Year's treat."

Manufacturing data tentatively positive, house price growth slows

Economic data showed tentative improvement in the UK manufacturing sector at the end of 2025.

The S&P Global UK manufacturing PMI rose to a 15-month high of 50.6 in December from 50.2 in November, remaining above the 50 threshold that separates expansion from contraction, although below the earlier flash estimate of 51.2.

Output increased for a third consecutive month and new orders rose for the first time since September 2024, supported largely by stock building and efforts to clear backlogs.

S&P said manufacturers faced fewer headwinds as uncertainty linked to the Autumn Budget, tariffs and the JLR cyber-attack began to ease, though employment continued to fall for a 14th month and export orders declined for a 47th month, albeit at one of the slowest rates in that sequence.

House price data meanwhile pointed to a cooling housing market.

Nationwide said annual UK house price growth slowed to 0.6% in December, the weakest rate since April 2024, as its index fell 0.4% on the month to 543.0 and average prices eased to �271,068.

The lender's chief economist Robert Gardner said prices "ended 2025 on a softer note" but described the housing market as resilient overall, with mortgage approvals near pre-pandemic levels despite subdued consumer sentiment and higher borrowing costs.

Elsewhere, eurozone manufacturing remained under pressure, with the HCOB manufacturing PMI falling to a nine-month low of 48.8 in December from 49.6.

Production slipped back into contraction and new orders fell at the fastest pace in almost a year, though business optimism for the year ahead improved.

HCOB chief economist Cyrus de la Rubia said companies continued to cut staff amid weak demand, but noted hopes that German stimulus and higher European defence spending could support the sector in 2026.

In commodities, oil prices were little changed after suffering their biggest annual loss in five years in 2025.

Brent crude was down 0.4% on Friday morning to $60.68 per barrel, while West Texas Intermediate fell 0.4% to $57.24.

Precious metals remained strong, with silver up 4.8% at $74.02 an ounce after a 148% surge last year, gold futures rising 1.4% to $4,402.90 an ounce, copper up 0.9% at $573.45 a pound and platinum jumping 3.1% to $2,126.06 an ounce.

Coatsworth noted that "the sharp rise in the price of gold and silver" has been one of the key tailwinds for the FTSE 100, benefiting miners such as Fresnillo.

Miners and banks among the gainers on a quiet Friday

In equities, miners were among the top performers as metal prices stayed near record highs, with Fresnillo, Glencore and Anglo American all advancing.

Banks also traded higher, led by gains in HSBC, Lloyds Banking Group and NatWest Group.

Coatsworth said the FTSE 100's strong showing over the past year reflected its "diverse range of industries offering a tonic to investors who started to get the jitters about tech stocks," adding that overseas investors have increasingly "looked away from the US for opportunities" and towards "cheaper areas of the market, of which the UK is one."

Corporate news was otherwise limited, though Seeing Machines rose more than 8% after announcing a new Future Mobility Group to support demand from the autonomous driving sector, while Invinity Energy Systems edged higher after securing two new 20MWh battery storage sales in Hungary for delivery in the first half of 2026.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 9,981.90 0.51%

FTSE 250 (MCX) 22,411.94 -0.26%

techMARK (TASX) 5,624.52 0.01%

FTSE 100 - Risers

InterContinental Hotels Group (IHG) 141.95p 35.71%

Rolls-Royce Holdings (RR.) 1,187.00p 3.22%

Burberry Group (BRBY) 1,301.00p 2.52%

Fresnillo (FRES) 3,410.00p 2.28%

Babcock International Group (BAB) 1,270.00p 2.17%

Glencore (GLEN) 415.30p 2.15%

BAE Systems (BA.) 1,744.50p 1.78%

Melrose Industries (MRO) 598.40p 1.70%

Airtel Africa (AAF) 360.80p 1.58%

International Consolidated Airlines Group SA (CDI) (IAG) 420.80p 1.57%

FTSE 100 - Fallers

Auto Trader Group (AUTO) 574.00p -2.11%

British Land Company (BLND) 396.80p -1.73%

Convatec Group (CTEC) 239.40p -1.56%

Coca-Cola Europacific Partners (DI) (CCEP) 6,750.00p -1.46%

Bunzl (BNZL) 2,046.00p -1.45%

Games Workshop Group (GAW) 18,650.00p -1.43%

Rightmove (RMV) 512.40p -1.39%

British American Tobacco (BATS) 4,163.00p -1.21%

Smith & Nephew (SN.) 1,225.00p -1.09%

Next (NXT) 13,535.00p -1.06%

FTSE 250 - Risers

BlackRock World Mining Trust (BRWM) 832.00p 3.48%

Princes Group (PRN) 464.50p 3.22%

Ocado Group (OCDO) 242.80p 2.88%

Fidelity China Special Situations (FCSS) 309.00p 2.49%

Pacific Horizon Inv Trust (PHI) 799.00p 2.44%

Schroder Asia Pacific Fund (SDP) 673.00p 2.28%

Schroder Asian Total Return Investment Company (ATR) 572.00p 2.14%

Templeton Emerging Markets Inv Trust (TEM) 240.00p 2.13%

Bluefield Solar Income Fund Limited (BSIF) 69.90p 2.04%

Harbour Energy (HBR) 200.40p 1.93%

FTSE 250 - Fallers

IntegraFin Holding (IHP) 347.00p -3.61%

Kier Group (KIE) 214.50p -3.38%

Marshalls (MSLH) 174.60p -3.32%

Big Yellow Group (BYG) 1,012.00p -3.25%

B&M European Value Retail S.A. (DI) (BME) 164.20p -2.73%

GB Group (GBG) 250.00p -2.72%

RHI Magnesita N.V. (DI) (RHIM) 2,705.00p -2.70%

Lancashire Holdings Limited (LRE) 626.00p -2.34%

Hays (HAS) 55.00p -2.31%

Pets at Home Group (PETS) 193.50p -2.27%