UK equities moved lower at Thursday’s open, extending recent weakness, while sterling edged down against the US dollar. Broader European markets were mixed as investors digested a combination of macro moves and company-specific updates from the retail and energy sectors.
By 08:30 GMT, the FTSE 100 was down around 0.3%, while the pound slipped 0.1% against the dollar to roughly 1.34. In continental Europe, Germany’s DAX rose 0.3%, while France’s CAC 40 eased 0.1%.
UK round-up
Overall, early trading reflected cautious sentiment, with currency weakness and profit warnings weighing on UK equities, partially balanced by upbeat updates from parts of the grocery and food-to-go sector.
Shell issues Q4 2025 trading update
Shell plc (LSE:SHEL) released its fourth-quarter 2025 trading update ahead of full-year results due on 5 February 2026. The group guided for LNG liquefaction volumes of 7.5–7.9 million tonnes for the quarter, up from 7.3 million tonnes in Q3. Integrated Gas production is expected to average between 930,000 and 970,000 barrels of oil equivalent per day.
Associated British Foods shares slide on profit warning
Shares in Associated British Foods plc (LSE:ABF) fell sharply in early trading, dropping around 11% after the company warned that annual profit would come in below last year’s level. The Primark owner pointed to weaker trading in continental Europe and softer demand across parts of its US food operations. By 08:16 GMT, the stock was still down 11% as investors reacted to the downgrade. Management also reversed its previous outlook for 2026, now expecting both adjusted operating profit and earnings per share to decline year on year.
Greggs posts steadier Q4 sales growth
Greggs plc (LSE:GRG) reported a relatively resilient fourth-quarter performance despite ongoing consumer pressures. Like-for-like sales improved to 2.9% in Q4 from 1.5% in Q3, while total sales increased by 7.4%, up from 6.1% in the previous quarter. The company gained market share during the period, although results came in below management’s earlier guidance of around 4% growth. Despite this, the board said full-year 2025 profit before tax is expected to remain in line with prior expectations of roughly £173m.
Tesco lifts profit guidance after strong Christmas
Tesco plc (LSE:TSCO) raised its profit outlook following a stronger-than-expected Christmas trading period. The UK’s largest grocer now expects adjusted operating profit for the 2025/26 financial year to land at the top end of its £2.9bn–£3.1bn guidance range, supported by higher sales across most divisions during the third quarter and festive period.
Marks & Spencer reports solid festive trading
Marks and Spencer Group PLC (LSE:MKS) said it welcomed a record number of shoppers over the Christmas period, with group sales rising to £4.99bn in the 13 weeks to 27 December 2025. Excluding Ocado Retail, which has been consolidated since April 2025, sales increased by 3.3%. Performance was driven primarily by strength in food, offsetting a more challenging consumer backdrop elsewhere in the business.
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