Category: Top Story

European equity markets were mixed on Thursday, as investors weighed a steady flow of corporate earnings against fresh UK economic data, while also keeping an eye on strong results from TSMC and geopolitical developments involving Greenland and Iran.

On the macroeconomic front, official figures showed that the UK economy rebounded more strongly than expected in November. Gross domestic product expanded by 0.3% on a monthly basis, reversing a 0.1% contraction in October and outperforming forecasts that had pointed to growth of just 0.1%.

Separate data indicated that the UK’s visible trade deficit narrowed slightly to £23.7 billion in November from £24.2 billion a month earlier, although the gap remained wider than the £20.3 billion economists had expected.

In early trading, France’s CAC 40 was down 0.1%, Germany’s DAX edged up 0.1%, while the UK’s FTSE 100 outperformed with a 0.5% gain.

Among individual stocks, Alstom (EU:ALO) advanced after the French rail group secured a contract worth around €500 million to supply 26 additional Coradia Max double-decker trains to Landesanstalt Schienenfahrzeuge Baden-Württemberg.

Safestore Holdings (LSE:SAFE) also moved higher, following the release of results showing solid operational growth for the year ended 31 October 2025.

Shares in Schroders (LSE:SDR) climbed after the investment manager said it expects full-year 2025 profits to come in ahead of market expectations.

Pub and restaurant operator Mitchells & Butlers (LSE:MAB) also gained ground after reporting a 4.5% increase in like-for-like sales for the first quarter.

In the technology space, Dutch semiconductor equipment supplier ASML (EU:ASML) rallied after TSMC delivered better-than-expected fourth-quarter revenue and profit, highlighting continued strength in demand for advanced AI chips.

Elsewhere, Swedbank shares jumped after the US Department of Justice formally closed a long-running investigation into the bank’s historical anti-money laundering controls.

On the downside, UK housebuilder Taylor Wimpey (LSE:TW.) fell after warning that operating profit margins are likely to come under pressure in 2026.

Dunelm Group (LSE:DNLM) shares dropped sharply, as the retailer cautioned that full-year profit is now expected to come in at the lower end of expectations following slower growth in the second quarter.

Swiss plumbing systems specialist Geberit (TG:GBRA) also retreated, despite reporting a 4.4% increase in fourth-quarter sales, as investors focused on broader margin and demand concerns.

European equities traded without a clear direction on Thursday, as investors weighed geopolitical developments involving Greenland and Iran alongside stronger-than-expected economic data from the UK.

By 08:20 GMT, Germany’s DAX was down 0.2% and the UK’s FTSE 100 slipped 0.1%, while France’s CAC 40 edged 0.1% higher.

Greenland and Iran in the spotlight

Geopolitical considerations remained front and centre after US President Donald Trump struck an optimistic tone on the prospects of an agreement over Greenland, following high-level discussions involving US, Danish and Greenlandic officials.

“I think something will work out,” Trump said in reference to Greenland, even as Denmark’s foreign minister Lars Lokke Rasmussen cautioned that there remains a “fundamental disagreement” between Copenhagen and Washington after talks at the White House.

The comments followed meetings in Washington between Danish and Greenlandic foreign ministers and US Secretary of State Marco Rubio and Vice President JD Vance. In response to the situation, French President Emmanuel Macron convened an emergency defence cabinet. France has also sent military personnel to Greenland to take part in an exercise organised by Denmark and Greenland, which is an overseas Danish territory.

Several allied nations, including Germany, Norway and Sweden, have already begun deploying troops to Greenland as a show of support.

Sentiment was also helped by signs of easing tension around Iran. Trump said he had been informed that killings linked to Iran’s crackdown on protests were subsiding and added that he believed there was currently no plan for large-scale executions. His remarks followed heightened concern in the region that the US could launch strikes, after repeated warnings of possible intervention in support of Iranian protesters.

UK economy rebounds in November

Away from geopolitics, data published earlier on Thursday showed that the UK economy expanded by 0.3% in November, beating expectations for a 0.1% increase on the month.

The Bank of England expects the economy to have recorded flat growth over the October-to-December 2025 period, although it estimates that underlying growth is running at around 0.2% per quarter.

Corporate updates in focus

In corporate news, Richemont (BIT:1CFR) drew attention after reporting a rise in third-quarter sales, with strong demand in the Americas, Japan and the Middle East helping to offset currency headwinds.

In the UK, Mitchells & Butlers (LSE:MAB) posted a robust start to the year, reporting like-for-like sales growth of 4.5% in the first quarter, underlining continued outperformance across its estate.

Housebuilder Taylor Wimpey (LSE:TW.) said it expects operating margins to come under pressure in 2026, citing a weaker opening order book and softer pricing on bulk sales.

Asset manager Schroders (LSE:SDR) also featured after saying its 2025 annual results are expected to exceed market expectations, supported by rising income and stable costs.

Looking ahead to the US session, investors are awaiting further bank earnings from Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), along with results from investment manager BlackRock (NYSE:BLK).

Oil prices slide

Oil prices fell sharply, snapping a five-day rally, after Trump signalled a more restrained stance on Iran, easing fears of near-term supply disruptions.

Brent crude futures dropped 2.9% to $64.57 a barrel, while US West Texas Intermediate crude fell 2.8% to $60.26 a barrel. The declines followed gains of more than 10% over the previous five sessions, which had lifted prices to multi-month highs amid concerns that unrest in Iran could lead to US military action and disrupt production or shipping routes.

Trump reiterated on Wednesday that he had been told killings linked to Iran’s protest crackdown were easing and said he believed there was no current plan for mass executions.

UK equities traded modestly higher on Thursday morning, while the pound remained steady against the US dollar, as investors digested a series of corporate updates and fresh economic data. Broader European markets, however, moved lower.

As of 08:50 GMT, the FTSE 100 was up 0.04%, while sterling gained 0.02% against the dollar to trade at 1.34. Elsewhere in Europe, Germany’s DAX slipped 0.1% and France’s CAC 40 declined 0.2%.

UK roundup

The UK economy expanded by 0.3% in November, rebounding from a 0.1% contraction in October, according to figures released by the Office for National Statistics. On an annual basis, economic growth accelerated to 1.4% in November from 1.1% the previous month. Despite the return to growth, uncertainty continues to cloud the broader economic outlook.

In corporate news, Rio Tinto (LSE:RIO) and BHP Group (LSE:BHP) said they had signed a non-binding memorandum of understanding to explore collaboration on mining up to 200 million tonnes of iron ore at their adjacent operations in the Pilbara region of Western Australia. The proposal includes potential development of Rio Tinto’s Wunbye deposit, with BHP supplying ore from Yandi for processing.

Asset manager Schroders (LSE:SDR) said its 2025 annual results are expected to come in ahead of market forecasts. Adjusted operating profit is projected to be at least £745 million, up from £603.1 million in 2024, with adjusted net operating income expected to reach a minimum of £2.58 billion as income rose while costs remained broadly flat.

UK housebuilder Taylor Wimpey (LSE:TW.) cautioned that operating margins are likely to come under pressure in 2026 due to a weaker opening order book and softer pricing on bulk sales. For 2025, the company now expects operating profit of around £420 million, slightly below its earlier £424 million guidance, with margins forecast to narrow to 11% from 12.2% in 2024.

Wealth manager Rathbones Group (LSE:RAT) reported that funds under management and administration increased 2.3% quarter on quarter to £115.6 billion at 31 December 2025. The Wealth Management division remained the main contributor, with funds rising to £106.2 billion from £103.2 billion in the previous quarter.

Hospitality group Mitchells & Butlers (LSE:MAB) posted a strong start to the financial year, reporting like-for-like sales growth of 4.5% for the 15 weeks to 10 January 2026. Trading over the festive period was particularly robust, with like-for-like sales up 7.7% over the core three-week Christmas window, supported by higher volumes.

Meanwhile, Safestore Holdings (LSE:SAFE) delivered solid operational results for the year ended 31 October 2025, with total revenue rising 4.9% to £234.3 million despite inflationary pressures. Like-for-like revenue grew 3.1% across all markets, led by the UK, while Expansion Markets recorded growth of 27%.

Foxtons Group PLC (LSE:FOX) said on Thursday it expects to deliver both revenue and profit growth in 2026, even though it has entered the new financial year with a weaker sales pipeline than at the same point last year.

The London-based estate agency reported total revenue of around £172 million for the 2025 financial year, alongside adjusted operating profit of approximately £22 million.

In an unaudited year-end trading update, Foxtons cautioned that sales revenues in the first quarter of 2026 are likely to fall short of those achieved in the corresponding period of 2025. The group attributed this to a lower level of properties under offer at the start of the year.

That said, the company expects its lettings division to remain robust throughout 2026, which management believes could help offset some of the softness in the sales segment.

Foxtons also disclosed that it has completed an acquisition as part of the trading update, although no further details on the transaction were provided.

Mitchells & Butlers (LSE:MAB) delivered a robust start to the financial year, reporting like-for-like sales growth of 4.5% over the 15 weeks to 10 January 2026, with total sales up 3.5%, comfortably ahead of wider market trends. Trading over the festive period was a standout, with like-for-like sales rising 7.7% during the core three-week holiday window and jumping 10.5% across the five key festive days, culminating in a record-breaking Christmas Day for the group.

The company continued to invest significantly in its estate, completing 51 conversions and refurbishments so far this year. Management said returns from this capital programme remain encouraging, supporting confidence in the group’s long-term strategy. Alongside these investments, Mitchells & Butlers is progressing its Ignite efficiency programme, which, together with strong brand positioning, is expected to help the business absorb around £130m of cost pressures from higher labour and food costs in the current financial year while still gaining market share.

From an investment perspective, the outlook reflects a mixed financial picture. Operational efficiency and a solid equity base provide support, but challenges remain around revenue momentum and cash flow generation. Technical indicators point to a broadly neutral trading stance, while valuation metrics suggest the shares may be undervalued. Limited disclosure from earnings calls and a lack of recent corporate events restrict further insight.

More about Mitchells & Butlers

Mitchells & Butlers is a leading operator of managed restaurants, pubs and bars, with a diverse portfolio of well-known brands including Harvester, Toby Carvery, All Bar One and Miller & Carter, alongside Innkeeper’s Collection hotels in the UK and Alex restaurants and bars in Germany. The group focuses on branded eating and drinking-out concepts, leveraging prime locations and established formats to capture demand across the UK and selected European markets.

Savills (LSE:SVS) has said it expects solid year-on-year growth in 2025, supported by a clear rebound in transactional activity during the fourth quarter after a weaker mid-year period. Earlier softness was attributed to geopolitical and fiscal uncertainty, including US tariff concerns and delays around the UK budget, which weighed on market confidence.

Transactional revenues strengthened across EMEA, with particularly strong momentum in the Middle East and Southern Europe. The group also delivered a record performance from its small capital markets team in New York. Results in Asia Pacific were more uneven: growth in Hong Kong, Singapore, Korea and India was partly offset by continued weakness in Mainland China. However, restructuring measures in China have improved profitability, while the business in Australia was further reinforced and the firm continued to expand its real estate investment banking platform.

Outside core transaction-led activities, performance was steady. Property and facilities management delivered results in line with expectations, supported by further systems and organisational changes in China and Germany. Savills also acquired a 70% stake in Singapore-based Alpina Holdings, enabling the group to offer fully integrated facilities management services in that market. Consultancy operations, including valuation and project management, recorded strong demand, while Savills Investment Management generated stable revenues and approximately £2.3bn of net new capital inflows, reflecting rising investor appetite for secure core income strategies. Group-wide cost reviews are expected to lead to restructuring charges of up to £30m.

The company finished the year with net cash broadly unchanged, despite the impact of acquisitions and foreign exchange movements. Savills also completed a planned leadership transition, with Simon Shaw set to assume the role of chief executive from 1 January 2026 and a new chief financial officer due to join shortly. Management said strong pipelines and improving market sentiment support confidence in a recovery in transactional markets, alongside continued resilience in less cyclical parts of the business.

From a market perspective, Savills’ overall stock assessment reflects robust financial performance and positive corporate developments, which underpin its competitive position. Technical indicators point to a constructive trend, although valuation remains a moderating factor due to a relatively high price-to-earnings multiple. The absence of recent earnings call disclosures was not seen as materially affecting the overall view.

More about Savills

Savills plc is an international real estate advisory group providing transactional services such as capital markets and leasing advice to commercial and residential clients. The group also operates substantial less transactional businesses, including property and facilities management, consultancy and investment management. Savills has a global footprint spanning EMEA, Asia Pacific and North America, with a strong base in the UK, growing exposure to the Middle East and Southern Europe, and expanding capabilities in areas such as real estate investment banking and integrated facilities management.

Artemis Resources Limited (LSE:ARV) has announced plans to withdraw its ordinary shares from trading on London’s AIM market, with cancellation scheduled for 13 February 2026, leaving the Australian Securities Exchange as its sole listing venue. The board said the decision reflects the high costs of maintaining a secondary listing, added regulatory and management complexity, subdued UK fundraising conditions and persistently low liquidity on AIM.

The company believes shareholders will not be materially disadvantaged by the move, as trading will continue uninterrupted on its primary market, the Australian Securities Exchange. Following the delisting, Artemis will wind up its Depositary Interest (DI) facility, with any remaining DI holdings automatically converted on a one-for-one basis into ordinary shares on the Australian register.

However, UK-based investors will lose the protections associated with AIM rules once the delisting is completed and will need to ensure they have access to ASX-enabled brokerage services to trade or hold their shares going forward.

More about Artemis Resources

Artemis Resources Limited is an Australia-based company whose primary listing is on the Australian Securities Exchange under the ticker ARV. Its ordinary shares have also been admitted to trading on London’s AIM market since February 2022, although the ASX has remained the company’s principal market and main source of equity liquidity.

European equity markets showed a mixed picture on Wednesday as investors positioned ahead of a planned meeting between U.S., Greenlandic and Danish officials to discuss the future of the Arctic territory.

Markets are also awaiting a ruling from the U.S. Supreme Court on the reciprocal tariff introduced by President Donald Trump, adding to the cautious tone.

The UK’s FTSE 100 Index was up 0.3%, while France’s CAC 40 hovered just below flat. Germany’s DAX Index underperformed, slipping 0.5%.

Shares in BP Plc (LSE:BP.) moved lower after the British energy group warned it expects to book impairment charges of between $4 billion and $5 billion in the fourth quarter.

Education group Pearson (LSE:PSON) also fell sharply, despite reporting fourth-quarter sales growth of 8%.

Recruitment firm Hays (LSE:HAYS) was under pressure as well, after reporting a steeper-than-anticipated decline in quarterly fees.

On the upside, energy companies RWE (TG:RWE) and SSE (LSE:SSE) advanced after being named among the developers awarded guaranteed electricity price contracts in the UK’s latest offshore wind power auction.

European equity markets traded slightly higher on Wednesday as investors weighed geopolitical developments, with attention focused on upcoming discussions over Greenland’s future.

By 08:05 GMT, Germany’s DAX was up 0.1%, France’s CAC 40 added 0.4%, and the UK’s FTSE 100 advanced 0.2%.

Greenland meeting in focus

Geopolitics remained a key driver of sentiment, with markets watching a scheduled meeting between U.S. Secretary of State Marco Rubio and officials from Greenland and Denmark. The talks come amid repeated comments by U.S. President Donald Trump about “acquiring” the semi-autonomous Danish territory.

Trump has repeatedly argued that the United States must own Greenland to prevent Russia or China from gaining control of the strategically important, mineral-rich Arctic region. Greenland and Denmark have both stated that the island is not for sale, although Trump has not ruled out the use of force.

Elsewhere, unrest in Iran continued to weigh on global sentiment. The U.S.-based HRANA human rights group said on Wednesday that the death toll from protests has climbed to more than 2,500 people, as authorities move to suppress demonstrations. Trump on Tuesday urged Iranians to continue protesting, saying help is on the way.

U.S. producer inflation awaited

With little in the way of major European economic data scheduled, investor focus was set to shift back to the United States. Data released on Tuesday showed U.S. consumer inflation remained relatively contained, keeping the prospect of rate cuts in 2026 alive.

Attention now turns to upcoming U.S. producer inflation and retail sales figures, which could provide further insight into the future direction of monetary policy.

BP flags hefty impairment

In corporate news, shares in BP (LSE:BP.) were in focus after the energy group said it expects to book $4 billion to $5 billion in impairments in the fourth quarter, largely tied to its energy transition businesses. The company also pointed to weak oil trading.

BP has been seeking to refocus on its core oil and gas operations, stepping back from earlier ambitions to transform itself into a green energy-focused company.

Elsewhere, Pearson (LSE:PSON) reported that sales growth accelerated to 8% in the final quarter of the year, with the education group saying it expects operating profit in 2025 to increase by around 6%.

On Wall Street, investors were preparing for further bank earnings later in the session, with results due from Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC). The updates follow JPMorgan Chase (NYSE:JPM), which reported quarterly profit above market expectations on Tuesday.

Oil prices slip as inventories rise

Oil prices edged lower on Wednesday, giving back part of their recent gains after Venezuela resumed exports and U.S. crude inventories increased, although developments in Iran remained a key risk factor.

Brent futures fell 0.8% to $64.96 a barrel, while U.S. West Texas Intermediate crude declined 0.8% to $60.69 a barrel.

Both benchmarks had jumped more than 2.5% on Tuesday, with Brent reaching an 11-week high and WTI touching a 10-week peak, extending gains for a fourth consecutive session.

U.S. crude stockpiles rose by 5.23 million barrels in the week ended January 9, according to data from the American Petroleum Institute released on Tuesday. Official inventory figures from the U.S. Energy Information Administration are due later on Wednesday.

Adding to supply dynamics, OPEC member Venezuela has resumed crude exports under a deal between Caracas and Washington following the U.S. capture of Venezuelan President Nicolas Maduro. However, escalating protests in Iran have heightened concerns about potential supply disruptions from the world’s fourth-largest OPEC producer.

UK equities opened firmer on Wednesday, while sterling strengthened against the dollar, as investors digested a series of company updates and took encouragement from positive moves across European markets.

By 0841 GMT, the FTSE 100 was up 0.3%, while the pound rose 0.2% against the US dollar to trade above 1.34. Elsewhere in Europe, Germany’s DAX climbed close to 1% and France’s CAC 40 gained around 0.5%.

FTSE 100 round-up

BP PLC (LSE:BP.) said it expects to book post-tax impairments of between $4 billion and $5 billion in the fourth quarter of 2025, largely within its gas and low-carbon energy division, as lower oil and gas prices weighed on performance. The group also said net debt is forecast to fall to $22–23 billion from $26.1 billion at the end of the third quarter, supported by around $3.5 billion of divestment proceeds in the quarter. Full-year divestments are now expected to total roughly $5.3 billion, ahead of earlier guidance of $4 billion.

Hays Plc (LSE:HAYS) reported a 10% year-on-year fall in group net fees for the three months to December 31. Permanent recruitment fees declined 14%, while temporary and contracting net fees were down 8%, with reduced average hours worked in Germany weighing on temporary revenues.

Vistry Group PLC (LSE:VTY) said total home completions fell about 9% year on year in fiscal 2025 to roughly 15,700 units, compared with 17,225 in FY24. The decline reflected weaker activity across both Partner Funded and Open Market segments, as uncertainty earlier in the year affected delivery.

Pearson PLC (LSE:PSON) reported stronger momentum toward the end of the year, with underlying revenue growth accelerating to 8% in the fourth quarter, led by its Assessment & Qualifications division. For the full year, sales rose 4%, while adjusted operating profit came in at £610–615 million, representing around 6% underlying growth.

Frontier Developments plc (LSE:FDEV) upgraded its full-year outlook after a strong first half, driven by the successful launch of Jurassic World Evolution 3. Revenue for the six months to November 30 increased 26% to £59.6 million, while adjusted operating profit surged 76% to £9.7 million.

Liontrust Asset Management (LSE:LIO) reported net outflows of £1.0 billion for the three months to December 31, 2025, an improvement on £1.6 billion of outflows a year earlier. Assets under management and advice stood at £21.5 billion at the end of December and rose to £21.7 billion by January 10, 2026.