(Alliance News) – Stock prices in London opened little changed on Tuesday, with the FTSE 100 holding steady as weakness in mining and defence stocks offset gains elsewhere following recent advances.
The FTSE 100 index opened up 0.74 points, marginally higher at 10,141.06. The FTSE 250 was down 15.78 points, 0.1%, at 23,019.71, and the AIM All-Share was up 2.59 points, 0.3%, at 799.45.
The Cboe UK 100 was marginally lower at 1,017.43, the Cboe UK 250 was also marginally lower at 20,096.56, and the Cboe Small Companies was flat at 17,853.45.
The FTSE 100 was broadly flat at the open, as mining and defence shares weighed on the index after strong recent gains.
In European equities on Tuesday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was up 0.1%.
The pound was quoted at USD1.3459 early on Tuesday in London, down from USD1.3468 at the equities close on Monday. The euro stood at USD1.1664, down from USD1.1677. Against the yen, the dollar was trading at JPY159.03, higher compared to JPY158.12.
Markets largely shrugged off concerns on Monday over President Donald Trump’s latest attack on Federal Reserve independence, even as he galvanised senior Fed figures who sharply criticised the criminal investigation into Chair Jerome Powell, calling it an “unprecedented attempt” to undermine the central bank’s autonomy.
Two Republican senators also rebuked the Trump administration and questioned the credibility of the Justice Department in targeting Powell, whom Trump has long sought to replace as part of his push for lower interest rates.
Focus now turns to banks as the US earnings season gets underway, with JPMorgan Chase and Delta Air Lines reporting later on Tuesday. The US is also due to release its latest consumer price inflation data.
In London, Whitbread was the top gainer on the FTSE 100, up 3.7%, after reporting “continued strong trading momentum” in the third quarter, with group sales rising 2% year-on-year to GBP781 million, supported by accommodation growth in both the UK and Germany.
Premier Inn UK delivered 2% accommodation sales growth and a 3% rise in revenue per available room. Food & beverage sales fell 3%, as “expected”, reflecting the group’s strategy to convert lower-returning restaurants into hotel extensions.
In Germany, Whitbread reported accommodation sales growth of 16% in sterling terms and 12% in local currency, driven by a maturing estate and commercial initiatives. Revenue per available room for established hotels rose 9%, “significantly” outperforming the wider German market.
Looking ahead, the Bedfordshire-based hotel and restaurant owner raised its financial savings target to GBP75 million–GBP80 million from GBP65 million–GBP70 million. It also now expects the cost impact of business rates changes in financial 2027 to be around GBP35 million, below its earlier estimate of GBP40 million–GBP50 million. Current trading shows UK accommodation sales and RevPAR both up 4% in the six weeks to January 8, while Germany accommodation sales rose 11%.
CEO Dominic Paul says: “Our vertically integrated model means we are well-positioned to adapt to shifts in the trading and fiscal environment and can continue to deliver sustainable and long-term value for shareholders. As previously announced, in response to the recent UK budget, we are exploring a variety of options in order to further drive profits, margins and returns and will provide an update to the market regarding our five-year plan at the time of our financial 2026 results on April 30.”
Separately, LondonMetric, up 0.2%, said it has acquired nine additional Premier Inn hotels from Whitbread for GBP89.0 million, reflecting a net initial yield of 5.3% on newly signed 30-year leases. The portfolio generates GBP5.0 million in annual rent for the London-based real estate investment trust, subject to five-yearly CPI-linked uplifts.
It follows LondonMetric’s recent GBP44 million purchase of a separate Premier Inn portfolio, taking its ownership of the brand’s hotels to 22.
At the bottom of the FTSE 100, Games Workshop fell 3.4% despite reporting a “record” first-half performance, with higher revenue and profit.
Revenue for the 26 weeks to November 30 rose to GBP332.1 million from GBP299.5 million a year earlier, driven by core revenue of GBP316.1 million, up from GBP269.4 million. Pretax profit increased to GBP140.8 million from GBP126.8 million, while earnings per share climbed to 319.9p from 288.9p.
The group declared a dividend of GBP1.10 per share, taking dividends declared so far in financial 2026 to GBP4.85 per share, up from GBP4.20 in financial 2025.
Games Workshop continues to expand its own-store footprint and is seeking a new location for its cafe-format store on the east coast of North America.
On US tariffs, Chief Executive Kevin Rountree said the firm has incurred around GBP6.0 million in costs during the period, but the impact on gross margin has been more than offset by efficiencies, modest price rises, more stable commodity prices and lower stock write-offs.
Rentokil slipped 0.2% after appointing Mike Duffy as its new chief executive from March 16, joining from logistics firm OnTrac.
On the FTSE 250, Trustpilot surged 8.7% after forecasting bookings growth of 22% to USD291 million in 2025, with annual recurring revenue rising 28% to USD296 million and revenue up 24% to USD261 million.
The Copenhagen-based consumer review platform ended 2025 with USD48 million in cash after completing USD72 million in share buybacks and plans to extend its buyback programme by up to USD10 million.
THG was close behind, up 5.6%, after reporting second-half revenue growth of 6.7%, around 14% ahead of the top end of guidance. Beauty and Nutrition both contributed, with fourth-quarter revenue rising 3.9% to GBP527.4 million. The Manchester-based group reported its first full-year revenue growth at constant currency since 2021.
In Asia on Tuesday, markets were mostly higher. The Nikkei 225 in Tokyo surged 3.1%. In China, the Shanghai Composite fell 0.6%, while the Hang Seng Index in Hong Kong rose 0.9%. The S&P/ASX 200 in Sydney closed up 0.6%.
Global equities extended their record run after reports that Japan’s Prime Minister Sanae Takaichi may dissolve the lower house and call a snap election boosted sentiment. Technology stocks, including SoftBank, surged as markets reacted to election speculation and Friday’s strong Wall Street handover.
In New York on Monday, Wall Street ended higher on Monday, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.2% and the Nasdaq Composite adding 0.3%.
The yield on the US 10-year Treasury was quoted at 4.20% on Tuesday, widened from 4.19% on Monday. The yield on the US 30-year Treasury was at 4.85%, stretched from 4.84%.
Trump announced a 25% tariff on any country trading with Iran, escalating pressure on Tehran amid a violent crackdown on protests. German Chancellor Friedrich Merz said Iran’s regime was living out its final days, while China said it would protect its interests in response to the tariff move.
German Chancellor Friedrich Merz said on Tuesday that Iran’s regime was living out its last days, as pressure grew on the Islamic republic over protests that have reportedly killed hundreds of people.
A rights group estimates at least 648 people have been killed in Iran during the unrest.
Brent oil was quoted at USD64.32 a barrel early in London on Tuesday, up from USD63.55 late Monday. Gold traded at USD4,594.00 an ounce, down from USD4,621.38.
Still to come on Tuesday’s economic calendar are Ireland retail sales, the US business optimism index, US consumer price inflation, the US Redbook index and the US monthly budget statement.
By Eva Castanedo, Alliance News reporter
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