The FTSE 100 eased back on Wednesday as traders sold down positions in miners and oil majors amid a pause in the recent commodities rally.
With the US incursion into Venezuela proving to be a bit of a non-event for commodity markets, miners and oil majors fell back, dragging the index with them.
Traders may also be marginally nervous about Trump’s plan for Greenland, which could include military action, according to a White House communication released overnight.
London’s leading index was trading down 0.6% at 10,055 at the time of writing – but was still firmly above the 10,000 level. One would expect this mark to be tested in the coming days as traders test 10,000’s validity as a support level.
“The FTSE 100 retreated from yesterday’s record high amid murmurings about the fate of Greenland and lower oil and precious metals prices,” says AJ Bell investment director Russ Mould.
“As well as pledging to turn over between 30 and 50 million barrels of Venezuelan oil to the US following the weekend strikes on the country, prompting concern about crude oversupply and pressuring prices, President Trump is looking at options to acquire Greenland – with military action apparently not ruled out.
“For now, the market doesn’t appear to be too concerned that an attack will materialise, something Danish prime minister Mette Frederiksen has warned would spell the end of Nato.”
There were slightly more FTSE 100 risers than fallers on Wednesday, but the degree of selling of miners and oil companies meant the index dropped.
Antofagasta, one of the best performers in the early days of 2026, was the top faller on Wednesday, falling 4.8%, as copper prices stalled.
Lower oil prices weighed on the FTSE 100’s oil majors, with BP and Shell shares dropping by over 4%.
A pullback in silver prices after a storming end to 2025 hit Fresnillo shares, which were also down by more than 4%.
There were a few FTSE 100 corporate updates on Wednesday and little in the way of economic catalysts, so investors will look to the US markets for a steer as the session progresses.
The S&P 500 closed at a record high overnight as confidence in AI stocks returned.
The FTSE 100 outperformed the S&P 500 in 2025 as defensive sectors outperformed tech. It will be interesting to see how the early months of 2026 play out with US tech, especially related AI shares, trading well off recent highs and the FTSE 100’s more defensive constituents still riding high.