Derren Nathan, head of equity research, Hargreaves Lansdown: “Equity markets are continuing to thrive in 2026 in the face of mounting geopolitical tension. After a tentative open, the FTSE remains just a hair’s breadth from its all-time best. Mining stocks have been the key driver of the uplift so far in January, but today UK Plc is back under the microscope, with updates from housebuilder Persimmon and Premier Inn owner Whitbread.
Whitbread’s shares have been under pressure, with investors questioning the company’s ability to absorb the impact of business rate rises following Rachel Reeves’ November Budget. Larger premises, such as Premier Inn’s hotels, have been the hardest hit. Today’s Q3 statement should provide some relief for investors, with demand accelerating in both the core UK and fledgling German operations. The shares were up 5% in early trading. On the cost side, the group’s estimate of the next financial year’s business rate impact has been reduced below the previous range of £40-£50mn to £35mn, and the group is now set to drive greater-than-planned cost efficiencies this year. It’s also playing its part in the growing clamour by the hospitality industry for more supportive government policy. Whether this is enough to keep activist shareholder Corvax happy remains to be seen.
Despite a poor day for financials, US stocks managed to close out at another record high. Futures are pointing to an uneventful open after the bell rings on Wall Street. Donald Trump’s efforts to force a more doveish hand from the Fed have so far proved ineffective. His quest for looser monetary conditions has now brought US credit card lending rates into the crossfire sending a shudder through the sector. Most of the big US banks report this week, with J P Morgan in focus today. A revival in Investment Banking activity should provide support for a decent outcome but the key focus is likely to be Jamie Dimon’s outlook for net interest income and the broader economy in 2026.
Brent crude is holding onto recent gains as it hovers just above $64. The threat from the White House of a 25% tariff on any country that does business with Iran coupled with the potential for military action has raised concerns about the supply outlook from the world’s fifth largest producer.”
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