On Tuesday, Jan 21, the UK's main stock indexes saw slight gains, with the FTSE 100 staying close to all-time highs due to a weakened sterling. Positive earnings reports from companies like Abrdn and Premier Foods lifted the midcap index.
The blue-chip FTSE 100 increased by 0.1% at 1043 GMT, hovering just below its intraday peak of 8542.59 points reached on Monday.
Global stocks were subdued following U.S. President Donald Trump's recent announcements, as investors analyzed trade relations and tariff plans.
Sterling fell 0.67% against the dollar after data revealed a slight increase in the UK's jobless rate to 4.4% in the three months to November, the highest since May. Pay growth in the same period remained notably robust.
Traders are factoring in an 84% likelihood of a 25 basis point interest rate reduction by the BoE on Feb. 6, with approximately 62 basis points of easing projected by the end of 2025.
Leading gains in the FTSE 100, Lloyds Banking Group, surged 4.1% following reports of efforts by finance minister Rachel Reeves to shield car-loan providers from significant compensation payouts in a mis-selling case.
Barclays also rose by 0.9%, while the broader FTSE 350 banks index climbed 0.7%.
Driving the FTSE 250 midcap index up by 0.4%, Asset Manager Name, soared 5% after reporting 1.2 billion pounds ($1.5 billion) in net client cash inflows during the fourth quarter of 2024.
Premier Foods climbed 4.1% after projecting annual profits at the upper end of analysts' expectations, thanks to strong sales of its branded products during the holiday season.
Additionally, Oil Company Name rose by 1.5% after forecasting a 15.6% production increase in 2025, aided by improved asset reliability in the UK North Sea.