- FTSE 100 up 79 points to 10,124
- Glencore surges on merger talks, Rio Tinto falls
- All eyes on US tariffs, non-farm payrolls
4.52pm: Record day
The FTSE 100 closed at a record high, adding 79 points at 10,124 as across the Atlantic the Dow Jones and S&P 500 also saw new highs.
“The FTSE 100 followed the S&P 500, Dow and DAX by hitting a record closing high on the last day of the first full trading week of the year, marking an impressive start to 2026,” IG senior technical analyst Axel Rudolph said.
2.55pm: Wall Street makes subdued start after below-par jobs data
US markets opened in a subdued mood on Friday after a weaker-than-expected jobs report reinforced concerns that the labour market is losing momentum.
The US economy added 50,000 jobs in December, well short of forecasts for around 70,000. The unemployment rate edged down to 4.4%, but the headline masked a tougher reality for job seekers. Revisions showed hiring was softer than previously thought in both October and November.
Average monthly job growth in 2025 came in at just under 50,000, the slowest pace outside of a recession, as tighter immigration policy and cautious employers weighed on hiring. Healthcare and social assistance accounted for most of the gains, with many other sectors close to flat.
Long-term unemployment is creeping higher, while confidence in finding new work has fallen to record lows, underscoring the strain beneath an economy still avoiding outright job losses.
1.30pm: Wall Street keeps powder dry
US stock futures were on Friday as traders braced for a key jobs report and a possible Supreme Court ruling on Trump-era tariffs.
Markets are focused on December’s nonfarm payrolls data, which is expected to show modest job growth and a slight drop in the unemployment rate.
The report follows earlier disruptions that delayed the November print and cancelled October’s, making today’s figures especially important. A softer labour market could strengthen the case for interest rate cuts later this year.
Investors are also on alert for a potential Supreme Court decision on whether former President Trump overstepped legal boundaries in imposing wide-ranging tariffs under national emergency laws. A ruling could reshape US trade policy and impact global markets.
Elsewhere, markets are watching developments around Venezuela and a surprise move by Trump to direct Freddie Mac and Fannie Mae to buy $200 billion in mortgage-backed securities — a bid to ease housing costs. Full details on that plan remain unclear.
12.30pm: Miners in demand
The potential mega-merger of Rio Tinto and Glencore seems to have reignited interest in the sector, with shares in the latter rising 10% after confirmation of talks between the two to create a $280 billion Goliath that would be the world's biggest digger.
The bow waves of Friday's announcements pushed stock in Antofasta higher. The read across from the potential deal is copper consolidation, and Anto is London's only pure-play producer of the red metal.
Anglo American, formerly in Rio's cross-hairs, also received a boost.
Outside the commodity metals, it was another strong day for Fresnillo, which received a fillip from the silver price, which rose 4.5% in early afternoon trading.
10.15am: Some small-cap movers
Bluebird Mining Ventures (LSE:BMV) shares jumped close to 8% after a strategic update revealed growing inbound interest in its gold streaming and treasury strategy. Discussions cover structured gold deals and digital formats, with macro conditions and interest-rate expectations driving renewed engagement from counterparties. Read more
Pulsar Helium (LSE:PLSR) climbed 7% to 57p after a new high-pressure gas zone was found at Jetstream 5, Minnesota. Drilling continues toward 5,000 feet, with flow testing planned for early February 2026 across Jetstream wells 3, 4, and 5, and interim results to be shared once verified. Read more
Blencowe Resources PLC (LSE:BRES) rose 3.1% after deep-hole assays at Beehive, Orom-Cross showed 94–95m of 5.6–6% graphite. Executive chair Cameron Pearce said the deposit’s scale and quality support growth, with more drill results and funding updates expected through 2026. Read more
9am: Double trouble: tariff verdict and US jobs data
Today could shape up to be a high-stakes "double whammy" for the markets.
Jim Reid of Deutsche Bank warns that we are entering a major window of volatility, starting with a potential Supreme Court ruling on the Trump administration’s tariffs. At issue is whether the International Emergency Economic Powers Act (IEEPA) act can be used for broad trade penalties—a move that accounts for roughly half of the administration's tariff hikes.
While prediction markets like Polymarket only give the White House a 25% chance of a win, Reid notes that even a loss might not end the trade war, as the administration has several other legal loopholes to exploit. He suggests that while mid-term "cost of living issues" might keep actual rates below headline levels, the court’s decision remains the "greatest potential source" of market swings this week.
Adding to the drama, the US December non-farm payrolls report lands at 1:30pm London time. After a string of data delays caused by the government shutdown, this report should offer a "normal" look at the economy, with Deutsche forecasting a gain of 50,000 payrolls and a slight dip in unemployment to 4.5%.
However, Reid remains skeptical of the precision of these early figures, especially with five years of annual revisions being baked in at once. As he colorfully puts it, "the random number generator that is the initial payrolls print could be even more random than normal."
Between the legal drama in Washington and the murky data from the BLS, investors should expect a very bumpy ride as the afternoon progresses.
8.45am: More early risers
Shares in Clarkson PLC (LSE:CKN) jumped more than 5% after the company said underlying pre-tax profit for 2025 is expected to hit at least £90 million. Stronger performance in the second half of the year helped lift forecasts, though the figure is still subject to audit. Clarkson also confirmed it will release its full-year results on 9 March.
Halma PLC (LSE:HLMA) rose 1.4% after the company announced it is acquiring Italian fire and gas safety firm Safetec Srl for €72.5 million. The purchase, funded from existing facilities, strengthens Halma’s Safety sector and expands its geographic reach. Safetec, founded in 2003 near Milan, provides customised fire and gas safety systems for complex industrial projects across power, oil and gas, and pharmaceutical sectors.
8.20am: FTSE off to a positive start
No surprises as the FTSE 100 opened higher, as predicted. Shortly after the open, London's blue-chip index was 23 points higher at 10,067.40.
Glencore PLC (LSE:GLEN) led the early risers with a 6.8% jump after confirming talks with Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) to complete a $260 billion mega-merger that would create the world's largest miner. Rio Tinto fell 2.2%.
Other miners also feature on the leaderboard this morning, including Antofagasta PLC (LSE:ANTO) with a 3.3% gain, and Anglo American PLC (LSE:AAL), up 2.6%.
While Marks and Spencer Group PLC (LSE:MKS) built on yesterday's gains with a 1.8% rise, J Sainsbury PLC (LSE:SBRY) led the decliners, down 2.3% in early trade, following a trading statement from the supermarket giant.
Tesco PLC (LSE:TSCO) shed 1.7%, extending yesterday's losses after a positive trading statement failed to meet expectations.
Shoppers stay home: December footfall dips
Still on retailers: retail footfall slipped again in December, ending the year on a rather muted note, according to the latest numbers from the British Retail Consortium.
All retail locations saw fewer visits, with shopping centres taking the biggest hit. High streets held up a bit better thanks to convenience shopping and local events, while retail parks gave back some of their earlier gains.
In the end, festive offers weren’t enough to shake off economic worries, tight household budgets and cautious shoppers, leaving the Golden Quarter a little less golden than hoped.
Pubs get a pint, shops get the bill?
Independent retailers are watching the government prepare a new round of business rates relief for pubs and asking a simple question: what about us?
According to the British Independent Retailers Association (BIRA), small shops are facing the same challenges as pubs, including soaring rateable values, rising wages, cautious shoppers, and relentless pressure from online giants and cheap imports.
Bira boss Andrew Goodacre says it feels like retailers have been left on read, despite being included in past support schemes such as pandemic-era rates relief. With ministers expected to ease the pain for pubs within days, he wants the same treatment for independent shops.
Goodacre warns that leaving retailers out would be a bad look for high streets already under strain. In fact, he jokes that shopkeepers might need to copy pubs and start banning MPs to get noticed. With business rates discounts slashed in November’s Budget, many independents are bracing for much bigger bills from April.
Ahead of the open
The FTSE 100 is expected to open around 23 points higher on Friday, according to spread betting firms, looking to end the first full trading week of the year on the front foot after hitting a new record on Tuesday.
London's blue-chip index gave back its afternoon gains to end yesterday's session 3 points down at 10,044 as energy shares came under pressure and Tesco sank over 7% following a disappointing third quarter.
Wall Street turned in a mixed performance overnight, as a surge in defence stocks saw the Dow Jones finish 0.6% higher, while drops in tech giants Nvidia, Apple and Meta saw the Nasdaq fall 0.4%. The S&P 500 was flat.
Asian markets are mostly firmer this morning, with Tokyo's Nikkei 225 up 1.6%, Hong Kong's Hang Seng up 0.3% and Shanghai's SSE Composite up 0.9%. In Seoul, the Kospi is up 0.8%, but Mumbai's BSE Sensex has shed 0.8%. Sydney's ASX 200 closed little changed.