Finance
UK's FTSE 100 holds steady as upbeat earnings offset global trade tensions
Published by Global Banking and Finance Review
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Quick Summary
FTSE 100 holds steady as positive earnings from companies like Rio Tinto and Burberry offset trade tensions linked to Greenland.
FTSE 100 Steady as Positive Earnings Counter Global Trade Concerns
Market Overview and Key Earnings
Jan 21 (Reuters) - London's FTSE 100 held steady on Wednesday as weaknesses in banks and industrials amid renewed trade tensions linked to Greenland overshadowed some upbeat earnings.
Impact of Trade Tensions
The blue-chip FTSE 100 was flat at 22,997.66 points by 1045 GMT, coming off a three-day losing streak.
Sector Performance
Market sentiment deteriorated this week after U.S. President Donald Trump threatened to introduce escalating tariffs on eight European nations from February 1 unless the United States is allowed to buy Greenland.
Inflation and Interest Rates
Trump arrives in Davos, Switzerland, on Wednesday, where he is likely to escalate his push for acquiring the island despite European protests.
Banks were the biggest drag on the FTSE 100, down 0.9%, while industrial support services and aerospace and defence lost 2.1% and 1.4%, respectively.
Credit data and analytics company Experian maintained its full-year forecast and reported an 8% growth in its third-quarter organic revenue, though its shares dropped 5.2%.
Helping limit losses, London-listed shares Rio Tinto jumped 5% after the Anglo-Australian miner beat expectations for quarterly iron ore and copper production.
Industrial metal miners and precious metal miners continued to rise as prices of gold, silver and copper gained, with investors also gravitating toward the metals as safe‑haven assets.
Burberry climbed 5% after the luxury brand beat expectations for sales growth in the key holiday quarter.
The FTSE 250 midcap index meanwhile added 0.1% with Premier Foods up 6.6% after the Mr Kipling owner forecast annual profit at the upper end of market expectations.
JD Wetherspoon slumped 6.7% after the pub chain warned that fiscal 2026 profit could fall.
Meanwhile, data showed British inflation rose by more than expected in December, though investors held steady on their bets on the Bank of England cutting interest rates later this year.
"We continue to expect headline inflation to drop significantly in 2026, and remain of the view that the BoE will cut three times in March, June, and September," Goldman Sachs analysts said in a note.
(Reporting by Tharuniyaa Lakshmi and Shashwat Chauhan in Bengaluru; Editing by Vijay Kishore)
Key Takeaways
- •FTSE 100 remains steady despite trade tensions.
- •Banks and industrials see weaknesses.
- •Rio Tinto and Burberry report strong earnings.
- •British inflation rises more than expected.
- •BoE expected to cut interest rates in 2026.
Frequently Asked Questions about UK's FTSE 100 holds steady as upbeat earnings offset global trade tensions
1What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK stock market.
2What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power, and is often measured by the Consumer Price Index (CPI).
3What are interest rates?
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage, which can influence economic activity and consumer spending.
