(Alliance News) – Stock prices in London opened lower on Monday, tracking weakness in overseas markets amid renewed concerns over the Federal Reserve independence from the Trump administration.
The FTSE 100 index opened down 11.49 points, 0.1%, at 10,114.35. The FTSE 250 was down 59.56 points, 0.3%, at 22,976.17, and the AIM All-Share was up 4.94 points, 0.6%, at 795.36.
The Cboe UK 100 was down 0.1% at 1,015.42, the Cboe UK 250 was down 0.3% at 20,063.11, and the Cboe Small Companies was up 0.1% at 17,926.19.
In European equities on Monday, the CAC 40 in Paris was down 0.5%, while the DAX 40 in Frankfurt was marginally lower.
Most of the pressure remained centred on the US, where the dollar was slipping against all major currencies and stock futures were sliding by more than the declines seen in Europe and the UK.
The pound was quoted at USD1.3456 early on Monday in London, higher compared to USD1.3407 at the equities close on Friday. The euro stood at USD1.1688, higher against USD1.1631. Against the yen, the dollar was trading at JPY157.74, lower compared to JPY158.06.
Markets were reacting to renewed worries over the threat to the independence of the Federal Reserve.
Federal Reserve Chair Jerome Powell said the Justice Department had served the central bank with grand jury subpoenas threatening a criminal indictment, marking a major escalation of the Trump administration’s attacks on the Fed.
Powell said the action related to congressional testimony given in June on renovation work at the Fed’s headquarters in Washington, but added it should be seen in the broader context of attacks launched by the administration, and particularly the president, over interest rate policy.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said.
In the UK, there were further signs of weakness in the labour market after a survey by the Recruitment & Employment Confederation and KPMG showed employers cut back hiring again in December.
Permanent staff placements fell at the steepest rate in four months, the survey showed, reflecting the higher cost of employing people as well as uncertainty ahead of the budget at the end of November.
The survey is closely watched by the Bank of England, which is due to meet next month to decide on the path of interest rates.
The week ahead includes the start of Wall Street’s earnings season, alongside US inflation figures and the release of November’s UK GDP estimate.
JPMorgan Chase and Delta Air Lines report on Tuesday, followed by Citigroup on Wednesday and Goldman Sachs on Thursday.
Richard Hunter, Head of Markets at interactive investor, said: “As is traditionally the case, the banks will be at the vanguard [of earnings season], with updates due from JP Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley.
“Quite apart from the read across to the UK banks in regard to deal making and trading activity, the numbers come against a backdrop of a Presidential proposal to cap credit card interest rates, prompting concerns that credit availability for consumers and small businesses could be compromised, let alone any follow on effect on banking profitability.”
Gold climbed to a fresh record high on Monday, as a mix of geopolitical tension and questions over Federal Reserve independence sent investors towards safe havens. Gold was quoted at USD4,596.60 an ounce, up from USD4,504.56, marking a new record high.
Brent oil was quoted at USD63.12 a barrel early in London on Monday, down from USD63.42 late Friday.
Oil prices have been in focus over the past week following the toppling of Venezuelan leader Nicolas Maduro by US forces. Trump urged executives from major US oil companies to ramp up investment in Venezuela during a White House meeting on Friday.
Speaking afterwards, Trump said US companies would invest hundreds of billions of dollars in Venezuela, without providing details. Exxon Mobil Chief Executive Darren Woods said Venezuela’s legal and economic framework currently made investment impossible.
Trump told executives he wanted US oil companies to commit at least USD100 billion to boost Venezuelan oil production. “If you don’t want to go in, just let me know, because I’ve got 25 people that aren’t here today that are willing to take your place,” he said.
Trump added that the US and Venezuela were “working well together” to rebuild the country’s energy infrastructure.
Further attention has also been drawn to oil markets amid rising tensions in Iran, another major producer, as unrest grows and anti-government demonstrations erupt. Trump has previously threatened to “hit” Iran “very hard” if security forces kill protesters.
Back in London, Barclays fell 4.0%, the biggest individual decliner on the FTSE 100, reflecting its potential exposure to President Trump’s calls for a cap on credit card interest rates.
The US banking industry has warned that Trump’s plans to lower credit card costs would make credit less available and hurt consumers and businesses. Trump said on Friday that, effective January 20, the first anniversary of his administration, he was calling for a 10% cap on credit card interest rates.
British Land fell 2.9% after announcing that Chief Executive Officer Simon Carter will step down after more than five years in the role.
Carter is leaving to become CEO of P3 Logistics Parks, a European logistics property investor and developer owned by GIC. Carter, who first joined British Land in 2004 and returned as CFO in 2018 before becoming CEO in 2020, will serve a 12-month notice period. Chair William Rucker thanked him for his “significant contribution” and said he leaves the business with “a very strong management team and an exceptional London office campus and retail park platform”.
The board will now run a full process to appoint his successor.
JD Sports Fashion rose 1.8% after revealing plans to allow customers to directly buy products through AI platforms without leaving the apps.
It is the latest move by a major retailer to adapt to a shift by consumers towards using AI platforms such as ChatGPT and Copilot.
The sportswear giant’s tech boss told the Press Association that it believes AI is “the future of how people will shop” and JD plans to be at the forefront of the technology.
JD Sports said it is partnering with Commercetools and payment firm Stripe to allow “one-click purchases” through AI platforms.
On the FTSE 250, Oxford Nanopore rose 8.1%, the biggest gainer, after the Oxford-based DNA and RNA sequencing specialist said 2025 revenue is expected to rise to between GBP223 million and GBP224 million, from GBP183.2 million a year earlier.
This represents reported growth of 22% and constant-currency growth of 24%, slightly above its 20% to 23% guidance range.
The company said sales increased across all regions, with EMEAI, APAC and the Americas each delivering more than 20% constant-currency growth.
Oxford Nanopore ended 2025 with around GBP302 million in cash and liquid investments, ahead of expectations due to improved working capital but below GBP403.8 million in 2024.
Heathrow Airport recorded its busiest ever year in 2025, with passenger numbers surpassing 84 million for the first time.
The west London hub said it handled almost 84.5 million passengers over the year, up 0.7% from 83.9 million in 2024. December was also a record month, with 7.2 million passengers travelling through the airport.
In Asia on Monday, the Shanghai Composite in China rose 1.1%, while the Hang Seng index in Hong Kong was up 1.4%. The S&P/ASX 200 in Sydney closed 0.5% higher.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 up 0.7% and the Nasdaq Composite up 0.8%.
The yield on the US 10-year Treasury was quoted at 4.20%, widening from 4.17%. The yield on the US 30-year Treasury was quoted at 4.87%, widening from 4.83%.
Still to come on Monday’s economic calendar is Germany’s current account data.
By Eva Castanedo, Alliance News reporter
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