The FTSE 100 crept towards the 10,000 mark on Friday, buoyed by interest rate cuts by the Bank of England and the Federal Reserve earlier in the week.

London’s leading index staged a late rally yesterday afternoon and added another 0.1% on Friday to trade less than 2% away from the key psychological level for the index.

But the gains were less than convincing with fresh concerns about the pace of rate cuts next year putting a dampener on lower borrowing costs announced yesterday.

“The FTSE 100 ticked higher in early trading after lower-than-expected inflation in the US helped lift shares on Wall Street and across Asia overnight,” said AJ Bell head of financial analysis Danni Hewson.

“The knife-edge nature of yesterday’s rate decision by the Bank of England is keeping UK stocks in check and stalled the FTSE 100’s push towards the 10,000 mark. Investors have responded to the reality that we could be approaching the end of the current rate-cutting cycle.

“This saw housebuilders lose momentum as hopes for a significant drop in mortgage costs in the coming months begin to fade away. An unexpected drop in retail sales only added to the gloom around the consumer backdrop in the UK.”

Barratt Redrow was the top faller at the time of writing, losing 2.4%, while Persimmon gave up 1.9%.

JD Sports was also among the faller after Nike shares sank on US trading. JD Sports relies heavily on Nike as a supplier and its struggles with innovation has dogged JD since the start of the year.

“Nike shares fell nearly 11% in after-hours trading after a sharp decline in Chinese demand and the impact of tariffs on margins took the shine off the fact that second quarter revenue had beaten expectations: earnings fell 32% year-on-year,” explained Derren Nathan, head of equity research, Hargreaves Lansdown.

DCC was the top riser, adding 2%, after announcing the results of a tender offer.

ECR Minerals (LON: ECR) is acquiring Raglan Resources, which owns the Raglan gold project in Queensland for A$1.01m.  It brings A$1.2m of tax losses to go with ECR’s A$75m. The share price increased 19.1% to 0.25p.

Offshore energy market services provider Tekmar Group (LON: TGP) has won a contract with an existing customer worth €8m. There is existing infrastructure and potential for near-term production. This for a major UK offshore wind farm. Revenues should be recognised this year and next year. The share price gained 15.2% to 9.5p.

Tiger Alpha (LON: TIR) is set to launch its Bittensor subnet the Knowledge Delivery Network in the fist quarter of 2026. This is designed to make AI systems faster and reduce operating costs. The share price ROSE 10% TO 0.55P.

Eden Research (LON: EDEN) has appointed Syngenta as distributor to professionals in the indoor and outdoor ornamental crops for the UK and some other European countries. This includes Eden’ novel fungicidal product that will be called Evelta. Eden will supply the product to Switzerland-based Syngenta, which will then use its network to sell to growers. The share price improved 8.33% to 2.6p.

The new strategy of Naked Wines (LON: WINE) is already showing signs of paying off and Panmure Liberum has upgraded expectations due to strong pre-Christmas trading. The wines supplier expects full year EBITDA to be at the top of guidance of £5.5m to £7.5m. Panmure Liberum forecasts £7.2m, up from £6.2m. Pre-tax profit of £800,000 is estimated when previously a small loss was expected. The share price is 7.68% higher at 71.5p.

FALLERS

Elective surgeries have been delayed because of the flu season and strikes, and this has hit the performance of Surgical Innovations (LON: SUN) in the fourth quarter. Supply problems with a partner also hampered the business. Forecast revenues have been cut from £12.4m to £11.5m and that means that the loss will be slightly higher than last year at around £750,000. Net debt is expected to be £500,000 at year-end. The share price slumped 36.4% to 0.35p.  

Time Out (LON: TMO) disappointed the market with results showing worse than expected trading and a fundraising. Full year revenues fell from £103.1m to £73.2m and the operating loss was £49.7m, including £35.1m of write downs. Time Out is raising £8m at 8p/share and a retail offer could raise more. There is also a debt for equity swap of £4.9m. The share price dived 23.9% to 8.75p.

Ukrainian food producer Ukrproduct (LON: UKR) says second half trading has deteriorated, although volumes in the nine months to September were maintained. The share price declined 17.7% to 7p.

Video editing technology developer Blackbird (LON: BIRD) has raised £500,000 at 2.25p/share and this will fund additional marketing. The share price fell 17.2% to 2.4p.

The FTSE 100 was clinging onto gains on Thursday after the Bank of England cut UK interest rates to 3.75%, the lowest level since early 2023, in a ‘hawkish’ interest rate cut.

The Bank of England was widely expected to cut interest rates after a lower-than-expected inflation reading yesterday, so the 0.25% cut was baked into the cake ahead of the decision.

Nonetheless, the Christmas cheer of lower borrowing costs was evident in an FTSE 100 rally this week that takes the index to within touching distance of the 10,000 mark.

However, London’s leading index was just 3 points higher at the time of writing, after a 5-4 vote split raised questions about how many more rate cuts we’ll see next year.

“The Bank of England has slashed interest rates for the fourth and final time this year after a back-to-back fall in inflation figures,” said Brad Holland, director of investment strategy at J.P. Morgan Personal Investing.

“The decision to cut rates to 3.75% reflects a mixed economic picture, with UK growth relatively flat over the second half of this year while the latest inflation data came in softer than expected.”

Markets were on the front foot ahead of the Bank of England decision, after strong results from US chipmaker Micron Technology helped ease fears about the overvaluation of AI-related stock and sent US futures higher.

“US futures are pointing to a brighter start this afternoon, with stocks set to open higher,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The revolving wheel of AI news delivered a blowout quarter from chipmaker Micron after yesterday’s close, offering a timely antidote to worries that the AI spending boom is getting ahead of itself. With softer jobs data now behind us, the spotlight turns firmly to today’s inflation reading, which could set the tone for where markets head next.”

The big UK corporate story of the day was the appointment of Meg O’Neill as the first female CEO of BP, signalling a new chapter for the oil major that won’t be focused on renewables.

“The departure of Murray Auchincloss as BP CEO probably can’t be chalked up as a major surprise, but the timing and suddenness of it can be,” said AJ Bell investment director Russ Mould.

“Auchincloss has struggled with the difficult task of turning around BP’s fortunes since replacing Bernard Looney on a permanent basis less than two years ago. Looney left under a cloud regarding his personal conduct and after having commenced on an ambitious energy transition strategy that hit BP’s shares.

“Auchincloss has walked back on BP’s green push but has had his feet to the fire ever since activist investor Elliott joined the shareholder register earlier this year. The ultimate arbiter – the share price – doesn’t speak in Auchincloss’ favour, with a total return of just 5% under his tenure compared with 39% over the same period for the FTSE 100 and 19% for its main rival Shell.”

Investors will hope O’Neill can boost BP’s valuation, which still trades at a material discount to peers.

Whitbread shares were the top riser, 6% higher at the time of writing, after Corvex Management took a 6% stake in the group and demanded a third-party strategic review.

There were few losers on the session with most stocks trading higher. Burberry was the biggest faller as traders booked short-term profit.

Currys has more than doubled its adjusted profit before tax to £22m in the first half, driven by strong UK performance and an accelerating recovery in the Nordics.

The technology retailer reported a 144% year-on-year increase in adjusted profits, whilst free cash flow jumped 68% to £84m for the six months ended 1 November 2025.

Long-suffering investors who have held since before 2022 will be delighted with today’s results and the share price reaction. Curry’s shares were 10% higher at the time of writing and returned to the highs enjoyed in November. These are also the levels the stock traded at in 2021 before cratering by more than two-thirds.

Currys’ shares have rallied more than 200% since the lows of 2023, driven by a recovery in their key markets. This recovery continued in the half year to 1 November 2025.

“Currys shares have rocketed in early trading following an update that was full of big numbers pointing towards further progress for the retailer. The news caps an astonishing year for the share price, adding to the gains seen since late 2023,” said Chris Beauchamp, Chief Market Analyst at IG.

“But signs of weakness are still there, and like all retailers cost pressures remain acute. The shares now trade at a much more reasonable valuation, which means investors will become more demanding about showing signs of progress in the months to come.”

The UK and Ireland business proved the standout performer, with revenues climbing 6%. This growth was underpinned by market share gains, with credit adoption rising 160 basis points to 23.3%, business-to-business sales surging 16%, and new product categories expanding 35%.

Recurring service revenue grew 11%, whilst the company’s iD Mobile subscriber base increased 21% to 2.4m—tracking ahead of its 2.5m year-end target.

The Nordic operations showed renewed vigour with 7% revenue growth on a currency-neutral basis. Most product categories delivered gains, including a 30% increase in Epoq kitchen sales.

Group revenues reached £4.23bn, up 8% year-on-year, with like-for-like sales advancing 4%. UK and Ireland adjusted EBIT stood at £19m, down £4m due to government-mandated colleague cost increases that weren’t fully offset by savings. The Nordics, however, contributed £35m in adjusted EBIT, up £17m, benefiting from stable gross margins and tight cost control.

“Overall, Currys is now a cash-generating business with a clear path to further margin improvement and shareholder returns,” Adam Vettese, Market Analyst at eToro said.

Currys has completed £30m of a £50m share buyback programme and declared an interim dividend of 0.75p, bringing total shareholder returns to £75m this year.

The board maintained its full-year guidance, expecting continued growth in both profits and cash flow.

AI Bell has selected four shares for investors to consider in the year ahead, ranging from FTSE 100 pharma stalwarts to an ‘adventurous’ housebuilder committed to share buybacks.

Russ Mould, investment director at AJ Bell, outlines the investment cases for the four noteworthy stocks, highlighting what investors should keep an eye on in the year ahead:

Cautious: GSK (GSK) – £18.04p

“The one thing that neither equity, nor fixed income nor currency markets, seem to be pricing in for 2026 is a global economic slowdown or recession. As such, that would probably be the biggest unpleasant surprise for the coming year and it therefore makes sense to include a stock with defensive qualities, just in case, since a balanced portfolio is designed to be prepared for a range of scenarios to give both upside potential and downside protection. Pharmaceutical and vaccine giant GSK may just fit the bill, not least because the stock trades on barely 10 times forward earnings and comes with a 3.9% dividend yield for 2026, according to consensus analysts’ earnings forecasts.

“The early vibes are that incoming chief executive Luke Miels is not planning on major surgery at the FTSE 100 index member when he takes over from Dame Emma Walmsley in January, given how he is already publicly backing existing targets for profit margins in 2026 and revenues for 2030. Analysts are treating both goals with scepticism, especially the one for sales, given patent expiries in 2028 and 2029 in GSK’s HIV portfolio in particular. Lingering uncertainty over US policy on vaccinations under Secretary of Health and Human Services Robert F. Kennedy Jr. is also weighing on sentiment.

“Management counters that the drug development pipeline, with 66 drugs that are undergoing trial at Phase I, II or III, is more than capable of driving future growth, while GSK currently has a happy knack of beating even near-term expectations, something that could be very handy for shareholders if the cycle turns down and earnings start to disappoint elsewhere.

“A first share buyback since 2013 also speaks of management’s confidence in the future and tops up the total cash return from the stock.”

Balanced: Telecom Plus (TEP) – £13.96p

“A share price chart that goes from the top left-hand corner of the screen straight down to the bottom right is not a pretty sight, and shares in Telecom Plus are no higher now than seven years ago, after a fall of more than 30% in the past six months. Yet this fall could represent an opportunity to tuck away a stock with a strong long-term record of growing its customer base, profits and dividends.

“November’s first-half results have weighed on shares in Telecom Plus, which provides energy, mobile, insurance and broadband services to more than 1.4 million customers. Higher costs relating to meter installation and its longstanding energy supply deal with E.ON, increased bad debts and higher customer churn all contributed to a year-on-year drop in first-half profits, but chief executive Stuart Burnett asserted some of this was down to timing issues, as he stuck to forecasts for customer and profit growth for the full year to March.

“An increase in the interim dividend spoke of management’s faith in the outlook, and Telecom Plus can point to dividend payments worth 922p a share in the past decade, a figure which bears scrutiny in the context of the current share price and the healthy balance sheet carrying relatively little debt. Potential for further growth in customers, as they shop around for better deals, and cross-selling underpin the long-term outlook and this could help the shares if Telecom Plus convinces the doubters and delivers on its full-year profit outlook next spring.

“Forward earnings multiples of around 12 times and 11 times for the fiscal years to March 2026 and 2027 respectively, with a forward dividend yield of more than 7%, may also provide the right mix of upside potential and downside protection.”

Adventurous: Bellway (BWY) – £26.33p

“It is hard to block out the drumbeat of doom which seems to surround the UK economy and its equity markets, but unloved can mean undervalued, and that can be an opportunity, especially as it may not take much to change perception and offer something that may be seen as good, or even just less incrementally bad, news. Housebuilder Bellway may just be a case in point.

“The share price still seems sceptical as to the scope for, and pace of, any upturn in the UK housing market. As a result, Bellway’s stock trades at 0.9 times its year-end tangible net asset value per share figure. That discount of 10% provides investors with some downside protection, should the UK economy turn turtle, interest rates come down more slowly than thought or some industry or company-specific problem appear from out of the clouds. It also offers scope for capital appreciation, should lower interest rates, planning deregulation or improved consumer confidence kickstart an upturn in the wider housing cycle, and thus Bellway’s revenue, profits and cash flow.

“And Bellway is well positioned if and when that upturn develops, as it is carrying inventory worth £4.8 billion on its balance sheet, the equivalent of 748 days’ sales. Improved sell-through and completion volumes would help Bellway to liquidate that inventory and release cash to generate the funds that can be used to invest in the land bank and the company’s competitive position and – once that is done – fund dividends and share buyback programmes. Analysts’ consensus forecasts for dividends for the year to June 2026, coupled with a £150 million buyback, already equate to nearly 8% of the current stock market capitalisation, as an added potential attraction.”

Income: Lancashire Holdings (LRE) – 580p

“Lloyds of London syndicate manager Lancashire has a strong record of skilled underwriting in its specialist areas of insuring (and reinsuring) across aviation, property, marine and energy and generating healthy profits and dividends for its shareholders. Between 2008 and the first half of 2025, it has paid out more than 900p a share in ordinary and special dividends, a figure which catches the eye in relation to the current share price. Consensus analysts’ forecasts for dividends which imply a double-digit percentage forward dividend yield may also intrigue income seekers, particularly as Lancashire is expected to pay a special dividend payment for the fourth consecutive year in 2026.

“Some investors will shy away from catastrophe insurance and reinsurance, as they look at climate change and fear the worst. But Lancashire’s exposure to this year’s California wildfires proved more than manageable, and within the limits modelled by its underwriters for such terrible events, and the 2025 storm season has been relatively quiet, even allowing for the awful treatment handed out to Jamaica by Hurricane Melissa. Consequently, the outlook for 2026 earnings and return on equity is good. Although, perversely, fewer pay-outs across the industry means more capital is retained within it and competition for business could hit prices as a result.

“Growth at a new platform in the USA, lower reinsurance prices and skilled underwriting across syndicates 2010 and 3010 should help to support 2026’s earnings all the same, everything else being equal. The risk remains any unforeseen storms and squalls, but a well-capitalised balance sheet could help to buttress the company’s dividend payments – and the yield would still be around 3% even if unchanged, ordinary interim and final dividends are paid. 

“Lancashire’s shares trade at barely 1.3 times book, or net asset, value per share of $6.08, and that does not look like a lofty multiple for a business with Lancashire’s long-term returns profile.”