London stocks opened lower on Thursday, with the FTSE 100 down 0.3% to 10,024.70 by 11:00 GMT. The FTSE 250 slipped 0.3%, and the AIM All-Share eased 0.1% to 776.24.
Investor attention was focused on disappointing corporate updates from Associated British Foods, Tesco, and Shell, which offset broader market support.
Economy
UK housing data added to the cautious mood. Halifax reported house prices fell 0.6% in December to £297,755, the lowest level since June. Annual growth slowed to 0.3%, down from 0.6% in November. Halifax analyst Amanda Bryden said overall market activity remained resilient in 2025 and that lower mortgage rates and increasing lending options could support housing in 2026.
Geopolitics
Geopolitical developments remained part of the backdrop, with the US confirming it will manage Venezuelan oil sales indefinitely after President Donald Trump’s announcement about marketing volumes of crude from the country. That narrative has kept energy stocks under pressure alongside broader risk considerations.
UK Equities
Associated British Foods plunged more than 10% after warning that full‑year profit and earnings are expected to come in below last year’s levels amid weak Primark sales in continental Europe and mixed food division performance.
Tesco shares slid around 5% as quarterly sales at Booker disappointed and guidance failed to exceed expectations. Shell was lower by around 2.8% on a quarterly update that outlined softer adjusted earnings in key segments.
Marks & Spencer climbed 2% as food sales showed stability over the Christmas period, though non‑food divisions remain challenged.
Defensive and industrial names offered some support, BAE Systems rose nearly 6% amid continued interest in defence sector exposure, while Rolls‑Royce and Babcock International were also higher, benefiting from positive trends in aerospace and security.
On the FTSE 250, Ocado continued to perform well, gaining market share after data highlighted strong grocery sales growth for its joint venture with Marks & Spencer.
Greggs, the UK’s favourite for sausage rolls, saw shares drop 7% after issuing a profit warning and forecasting flat earnings for 2026, despite reporting solid sales growth last year.
Top Gainers
| Index | Company | Gain |
|---|---|---|
| FTSE 100 | BAE Systems | +5.14% |
| FTSE 100 | Endeavour Mining | +3.72% |
| FTSE 100 | Coca-Cola HBC | +2.16% |
| FTSE 100 | Marks & Spencer | +2.04% |
| FTSE 100 | Aviva | +1.47% |
Top Losers
| Index | Company | Drop |
|---|---|---|
| FTSE 100 | AB Foods | -11.65% |
| FTSE 100 | Tesco | -5.35% |
| FTSE 100 | Sainsbury’s | -3.62% |
| FTSE 100 | 3i Group | -3.49% |
| FTSE 100 | Mondi | -3.39% |
| FTSE 100 | Ashtead Group | -2.92% |