London's FTSE 100 falls as healthcare, bank stocks decline

• Healthcare stocks led losses, dropping 1.9% with GSK and AstraZeneca down 1.9% and 2.3% respectively, while banks retreated 1.2% after hitting record highs the previous session
• Luxury stocks fell after LVMH plunged 6.7% on disappointing results, pulling down Burberry (down 2.5%) and Watches of Switzerland (down 2%)
• Precious metal miners gained 2.1% as gold prices hit record highs above $5,300 per ounce, while energy stocks rose 1% on oil prices reaching their highest since late September

Market Summary: FTSE 100 Declines Amid Healthcare and Banking Weakness

Key Market Movements:

London's FTSE 100 fell 0.4% by mid-morning (1056 GMT) on January 28, 2026, while the mid-cap FTSE 250 rose 0.1%, reaching its highest level since January 2022.

Sector Performance:

Healthcare stocks led the decline, dropping 1.9%, with pharmaceutical giants GSK and AstraZeneca falling 1.9% and 2.3% respectively. Banking stocks retreated 1.2% after hitting record highs the previous day, with Investec down 1.6% and HSBC and Close Brothers both declining over 1%.

Luxury stocks faced pressure following LVMH's disappointing results, which sent the French conglomerate down 6.7%. UK luxury retailers Burberry and Watches of Switzerland fell 2.5% and 2% respectively.

Positive Movers:

Precious metal miners rallied 2.1% as gold prices hit record highs above $5,300 per ounce. Energy stocks gained 1%, with Shell and BP each up approximately 1% on rising oil prices—the highest since late September.

Individual Stock Highlight:

Pets at Home surged 5.3% after raising its full-year profit forecast despite lower third-quarter revenue, attributing the outlook to its retail turnaround strategy.

Market Context:

Investors awaited the U.S. Federal Reserve's policy decision, with most traders expecting interest rates to remain unchanged. Market participants are closely monitoring corporate earnings for insights amid geopolitical tensions and trade uncertainties.

The divergence between the large-cap FTSE 100 and domestically focused FTSE 250 suggests differing investor sentiment toward international versus UK-focused equities.