London stocks muted after geopolitical jitters, miners rise

• Industrial stocks fell 1.4% and travel/leisure dropped over 1%, pressured by geopolitical worries including Trump's Greenland-linked tariff threats and new U.S. sanctions on Iran
• Precious metal miners surged 3.6% to record highs while industrial metal miners climbed 0.9%, buoyed by optimism in commodities outlook
• Spire Healthcare jumped 16% after announcing it would 'explore strategic options' with potential buyers including Bupa and Triton Partners

Market Summary: London Stocks Muted After Geopolitical Jitters, Miners Rise

Key Market Movements

As of 10:17 GMT on January 26, London's FTSE 100 and FTSE 250 indices remained little changed amid mixed sector performance. Industrial stocks led declines, falling 1.4%, while travel and leisure dropped over 1% due to geopolitical concerns and rising oil prices.

Geopolitical Concerns

Market caution persists following last week's turmoil sparked by U.S. President Donald Trump's tariff threats against Britain and European nations linked to Greenland tensions. Though threats have eased, investors remain wary of tariffs becoming a standard negotiating tool. Fresh U.S. sanctions targeting Iran have intensified market anxiety.

Mining Sector Strength

Precious metal miners hit record highs, surging 3.6%, while industrial metal miners gained 0.9%, driven by optimism in the broader commodities outlook and precious metals reaching new peaks.

Financial Sector Highlights

Financial stocks and life insurers advanced 0.6% and 0.8% respectively. According to sources, HSBC and NatWest are expected to follow European rivals in raising profit targets when reporting annual earnings in coming weeks.

Economic and Policy Watch

Britain's economy has shown signs of stabilization since Finance Minister Rachel Reeves' November budget statement. Investors are focused on the Federal Reserve's upcoming policy decision, with rates expected to remain steady, though concerns about central bank independence may dominate discussions.

Individual Movers

Spire Healthcare surged 16% after announcing plans with bidders BP Marsh and Triton Partners to explore strategic options.

The mixed market performance reflects ongoing uncertainty over global trade dynamics and geopolitical tensions, with defensive sectors underperforming while commodity-linked stocks benefited from safe-haven demand.