Stock prices in London closed mostly lower on Tuesday, following news of slowing US core inflation and a raised forecast from the World Bank.
The bank has raised its global growth forecast by 0.2 percentage points for 2026, now expecting world GDP growth of 2.6%, but this still marks a slowdown from the 2.7% pace seen in 2025.
And the World Bank warned that the 2020s are “on track to be the weakest decade for global growth since the 1960s”.
Meanwhile, in the US, annual consumer price inflation was steady as expected in December, and private-sector employers added slightly more jobs the week before Christmas.
Back in London, the FTSE 100 index closed down 3.35 points at 10,137.35. The FTSE 250 ended down 104.89 points, 0.5%, at 22,931.97, and the AIM All-Share closed up 2.29 points, 0.3%, at 799.15.
Whitbread remained at the top of the FTSE 100, up 7.1%, having reported “continued strong trading momentum” in the third quarter.
Group sales rose 2% year-on-year to £781 million, supported by 2% accommodation sales growth in the UK and 16% accommodation growth in Germany.
And looking ahead, the Premier Inn owner raised its financial savings target to between £75 million and £80 million, from between £65 million and £70 million.
In smaller caps, Brave Bison rose 3.2%, after the advertising and communications agency reported net revenue of “not less than” £33.5 million for 2025, up 57% from £21.3 million the year before and ahead of consensus expectations.
Adjusted Ebitda and adjusted pre-tax profit also rose more than anticipated.
Looking ahead, Brave Bison is “comfortable” with consensus expectations for 2026, which include net revenue increasing to GBP45 million and adjusted Ebitda to £9.4 million.
Intuitive Investments was down 7.9%, after it raised £20.0 million through an equity fundraise, issuing 21.9 million new shares at 91.5 pence each.
IIG said the proceeds would be invested in Hui10, its largest holding, which focuses on the digital transformation of the Chinese lottery sector.
In European equities on Tuesday, the CAC 40 in Paris closed down 0.1%, while the DAX 40 in Frankfurt ended marginally higher.
The pound was quoted lower at 1.3428 dollars at the time of the London equities close on Tuesday, compared to 1.3468 dollars on Monday. The euro stood at 1.1638 dollars, lower against 1.1677 dollars. Against the yen, the dollar was trading at 159.17 yen, higher compared to 158.12 yen.
Stocks in New York were lower. The Dow Jones Industrial Average was down 0.7%, the S&P 500 index down 0.2%, and the Nasdaq Composite down 0.2%.
The yield on the US 10-year Treasury was quoted at 4.18%, narrowing from 4.19%. The yield on the US 30-year Treasury was unchanged at 4.84%.
In US data, compared with a year earlier, consumer prices were 2.7% higher in December, matching the increase recorded in November and in-line with the FXStreet-cited consensus.
On-month, prices rose 0.3% in December from November on a seasonally adjusted basis.
Core consumer price inflation, which strip out food and energy, was 0.2% on-month, in-line with the FXStreet-cited consensus. Annual core inflation was 2.6% in December, in line with November, but slightly below the 2.7% FXStreet-cited consensus.
US private sector employers added slightly more jobs in the week to December 20.
According to payroll processor ADP’s latest tracker, US private employers added an average of 11,750 jobs, up from 11,000 in the week to December 13.
ADP’s national employment report showed the US private sector added 41,000 jobs in December, improving from November when 29,000 roles were shed, but shy of the FXStreet-cited forecast of a rise of 47,000.
In geopolitical news, US president Donald Trump has said Iranians should continue nationwide protests, take over institutions and record names of “killers and abusers”, as authorities cracked down on mass demonstrations.
“Iranian Patriots, KEEP PROTESTING,” Mr Trump wrote on his Truth Social platform. “I have cancelled all meetings with Iranian Officials until the senseless killing of protesters STOPS. HELP IS ON ITS WAY.”
“The Trump administration’s announcement of a 25% tariff on countries doing business with Iran, and continuing suggestions of potential military intervention amid the escalating protests in the country, do not seem to be spooking markets too much right now,” commented AJ Bell’s Dan Coatsworth.
Brent oil, which has firmed amid the rising tensions in Iran, was quoted at 65.65 dollars a barrel at the time of the London equities close on Tuesday, up from 63.55 dollars late Monday.
Gold was quoted lower at 4,598.33 dollars an ounce, against 4,621.38 dollars.
The biggest risers on the FTSE 100 were Whitbread, up 183.00p at 2,767.00p, Pershing Square, up 153.66p at 4,875.66p, Mondi, up 23.14p at 918.14p, BP, up 10.30p at 436.90p, and Melrose Industries, up 14.80p at 645.80p.
The biggest fallers on the FTSE 100 were Glencore, down 32.61p at 435.89p, Kingfisher, down 12.10p at 312.80p, Smith & Nephew, down 44.33p at 1,209.67p, Convatec, down 8.00p at 236.00p, and Entain, down 23.40p at 726.00p.
On Wednesday’s economic calendar, the US has several releases, including producer inflation and the Federal Reserve’s Beige Book.
On Wednesday’s UK corporate calendar, there are half-year results from MS International and full-year results from Ramsdens. Also, Hays and Vistry release trading updates.
Contributed by Alliance News.
