UK stocks open higher as banks offset mining weakness

UK markets open firmer on banking strength

​United Kingdom (UK) equities opened higher, with the FTSE 100 gaining ground as banking stocks provided support. HSBC was among the heavyweight names contributing to the positive start for UK indices.

​The broader market showed mixed performance across sectors. Gains in financials and technology stocks helped to offset weakness elsewhere, particularly in commodity-linked names which faced pressure from retreating metals prices.

​Mining stocks edged lower as recent rallies in metals markets paused. Rio Tinto and Antofagasta were among the names moving lower alongside softer prices for gold and silver during UK trading hours.

​The FTSE 250 also advanced, with mid-cap stocks participating in the morning's positive sentiment. Sector rotation saw investors favouring financial and technology names over resource-heavy stocks in the session's opening phase.

​Cranswick jumps on strong Christmas trading

​Cranswick emerged as the biggest positive contributor to the FTSE 250, with shares climbing nearly 5% in morning trade. The food producer signalled full-year profit would likely come in towards the upper end of market expectations.

​The company reported strong Christmas trading performance, which supported its upgraded outlook. The results highlighted resilient consumer demand for its product range during the key festive period.

​Sage also reported positive results, delivering a strong first quarter performance. The software company reiterated its full-year guidance, providing reassurance to investors about its growth trajectory.

​Mitie added to the positive newsflow among mid-cap names. The facilities management firm said it remains on track to deliver double-digit revenue and operating profit growth, supporting broader market sentiment across the FTSE 250.

​UK inflation climbs to near two-year high

​UK shop price inflation accelerated to 1.5% year-on-year (YoY) in January, approaching a two-year high. The data showed continued pressure on consumer prices, with food costs rising at a faster pace than the headline figure.

​Food inflation climbed to 3.9% in January, marking a notable increase from recent months. The rise in grocery costs adds to pressure on household budgets, with essential spending taking up a larger share of consumer income.

​The inflation data comes as the Bank of England (BoE) continues to monitor price pressures across the economy. Food price increases have proven particularly sticky compared to other categories, presenting ongoing challenges for monetary policy.

​Prime Minister Keir Starmer commented on trade policy, saying the UK would not choose between the United States (US) and China. He reiterated a balanced approach to international relations ahead of his scheduled visit to Beijing this week.

​Asian equities push to fresh record highs

​Asian stocks reached a new record, with the MSCI Asia-Pacific ex-Japan index climbing approximately 1%. The advance came as investors looked ahead to upcoming earnings from major US technology companies, outweighing concerns about renewed tariff threats.

​South Korea's KOSPI reversed early losses to jump more than 2%, reaching a new high. This occurred despite President Trump announcing that US tariffs on South Korean imports would rise to 25%, with markets expecting diplomatic efforts to ease tensions.

Nasdaq 100 futures rose around 0.5% as investors positioned ahead of quarterly results from Microsoft, Apple, Meta and Tesla. The anticipation of strong technology earnings reinforced expectations that mega-cap performance could extend the recent equity rally.

​The positive sentiment in Asian markets reflected hopes that corporate earnings strength would offset geopolitical concerns.

​Precious metals surge on safe-haven demand

​Gold prices climbed approximately 1% to trade just below the metal's record level near $5110 per ounce. The advance reflected increased demand for safe-haven assets amid ongoing tariff uncertainty and currency market movements.

Silver jumped around 4–5%, outpacing gains in gold as precious metals rallied broadly. The move higher in silver prices came alongside a weaker US dollar, which typically supports demand for commodities priced in the greenback.

​The US dollar remained under pressure near multi-month lows against major currencies. Currency markets continued to reflect expectations about central bank policy divergence and trade developments affecting the dollar's relative strength.

​US 10-year Treasury yields edged slightly higher to around 4.23% after several sessions of declines.

​Oil prices retreat on supply considerations

​Oil prices fell in morning trading, with Brent crude oil declining roughly 0.7% to trade around $65 per barrel. The move lower came as markets monitored developments around potential supply increases from key producing regions.

​Kazakhstan emerged as a focus for oil markets, with traders watching for a possible resumption of supply. Any increase in output from the Central Asian nation could add to global inventory levels and weigh on prices.

​The retreat in crude oil prices followed recent gains, with the market consolidating after its latest move higher. Supply-side factors continued to drive short-term price action alongside demand considerations.

​Commodity trading activity reflected the mixed picture across energy and metals markets. While precious metals surged higher, crude oil faced downward pressure from supply expectations, highlighting divergent dynamics across commodity classes.