The FTSE 100 underperformed Europe again on Thursday as weaker miners dragged on the index.

London’s leading index was flat at the time of writing after trading sideways for most of the session. The losses and gains were marginal but disappointing, considering the German DAX was 0.9% higher.

The FTSE 100 was also unmoved by hopes of a US rate cut that encouraged further buying of US stocks overnight. The S&P 500 closed 0.3% to the good and within touching distance of all-time record highs.

“US stocks pushed through some early jitters, closing higher again, reinforcing the sense that momentum is back as rate-cut expectations firm up,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Investors are leaning into the idea that easier policy is coming, which is fuelling appetite for risk and lifting everything from blue chips to small caps. Still, with inflation data and Fed decisions ahead, the path is far from set in stone. Expectations have swung wildly over the past month, so assuming any cuts are a done deal could be a costly mistake, and volatility can just as quickly return if the rate cutting narrative shifts. One thing’s clear, if markets want a Santa rally, they need the Fed to stay in line.”

Precious metals miners were the biggest losers on the day as gold prices retreated again. Endeavour Mining lost 2.4%.

Rio Tinto was marginally higher and outperforming its mining sector peers as the CEO outlined a new strategy to make a ‘Stronger, sharper and simpler Rio Tinto’.

“Rio Tinto’s recently appointed commander in chief Simon Trott is today unveiling his master plan to investors. There are some bold ambitions here, which if achieved should put the mining giant on a firmer footing,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“Cost reductions and further diversification away from iron ore into future facing metals such as lithium and copper are all on the table. These measures have the potential to grow underlying cash profit by up to 50% by the end of the decade. However, the path to getting here won’t be easy with nearer term guidance looking a little underwhelming.“

Rio Tinto shares were 0.3% higher at the time of writing.

Spirax Group was the top gainer, up 2.4%, as the stock continued a rebound off technical support hit earlier in the week.

ITM Power shares have had a fantastic year so far, powered by a string of new contract wins across Europe as the adoption of hydrogen accelerates.

Today’s trading statement justifies this year’s gains, with the company posting record first-half revenue of £18.0 million for the six months ending 31 October 2025, as the British electrolyser manufacturer advances major projects and capitalises on accelerating European hydrogen infrastructure investment.

The Sheffield-based company is still loss-making, reporting an adjusted EBITDA loss of £11.9 million, but maintained a robust cash position of £197 million at the half-year mark. Thankfully, this is one company that UK investors can appreciate for its long-term value, rather than judging it by short-term profits.

“In the first half of the year, we again delivered our strongest ever six-month revenue performance. We continue to have a solid contract backlog and sales pipeline,” said Dennis Schulz, CEO of ITM Power.

“Our EBITDA losses have narrowed further, supported by strong manufacturing and project performance, as well as disciplined cost control and capital allocation. We look forward to providing our next update alongside our interim results in January.”

The strong performance comes as momentum builds in European hydrogen markets, particularly in Germany, which is making substantial infrastructure investments in pipelines, storage caverns, and hydrogen-ready gas power plants.

In the UK, the first projects under the HAR1 allocation are expected to reach final investment decision imminently, though US policy shifts have created uncertainty in that market.

ITM Power highlighted strong operational progress across its project portfolio. The company has fully delivered and installed its scope for the world’s first 100 MW PEM plant for RWE in Lingen, Germany. A second 100 MW Lingen plant and Shell’s Refhyne II 100 MW project are both progressing to plan.

The company’s sales pipeline remains strong, with particular demand for its NEPTUNE V containerised 5 MW plant and the new ALPHA 50, a 50 MW full-scope green hydrogen plant. ITM’s Hydropulse product has been well received, with multiple project opportunities advancing rapidly.

ITM Power maintained its full-year guidance, expecting revenue between £35 million and £40 million, an adjusted EBITDA loss of £27 million to £29 million. Year-end cash is expected to be between £170 million to £175 million.

AJ Bell has delivered a record set of results for the year ended 30 September 2025, with revenue rising 18% to £317.8 million and profit before tax climbing 22% to £137.8 million.

Higher customer numbers and stronger financial markets drove revenue growth. The investment platform operator saw its customer base grow by 102,000 to reach 644,000, representing 19% year-on-year growth.

Assets under administration surged to a record £103.3 billion, up from £86.5 billion the previous year, driven by net inflows of £7.5 billion and favourable market movements of £9.3 billion.

Profit before tax rose to £137m from £113m last year.

The company has proposed a final dividend of 9.75 pence per share, taking the total ordinary dividend to 14.25 pence, marking the 21st consecutive year of dividend increases.

“Our highly-cash generative business model and strong capital position allow us to invest whilst also delivering excellent value for customers and increasing shareholder returns,” said Michael Summersgill, Chief Executive Officer at AJ Bell.

“We are pleased to recommend an increase to our ordinary dividend for the 21st successive year, alongside a new share buyback programme, returning up to £50 million to shareholders throughout FY26.”

The AJ Bell continued his commentary by lambasting the Labour government for its investment policies introduced at last week’s Budget.

“There was little to cheer in last week’s UK Budget. We have consistently advocated for ISA simplification, our views being backed by behavioural research showing how removing complexity can help to increase retail investment activity in the UK,” Summersgill said.

“However, the reforms proposed take the ISA market in the opposite direction. ISAs will now see complexities such as an age-specific annual allowance for Cash ISAs and HMRC levying a charge on cash held in Stocks & Shares ISAs. Despite these interventions in the market, we are confident we can continue to provide an easy-to-use service and help customers to navigate this additional complexity successfully.”

Health assessment technology developer GENinCode (LON: GENI) says the New York health authorities have approved CARDIO inCode-Score® Polygenic Risk Score for the prediction and prevention of coronary heart disease.  This enables state-wide coverage at an average reimbursement of around $500 per test. Additional data will be submitted to the FDA in the first quarter of 2026 as part of the De Novo assessment. This approval is required to sell the test so that it can be used by other laboratories. The share price recovered 27.9% to 2.75p.

Kazakhstan-focused Caspian Sunrise (LON: CASP) has been awarded an extension to the previous Yelemes Deep licence at the BNG Contract Area. This is southeast of the Tengiz oilfield and offers potential shallow structures, as well as deep structures. The share price continued to rise following the return from suspension and is 17.7% higher at 3p, which is two-fifths more than the suspension price.

Ariana Resources (LON: AAU) reports the first gold pour at the Tavsan gold and silver heap-leach, where it has a 23.5% interest. Production should ramp up over the coming months and each steady production rates in the second quarter of 2026. The share price gained 6.9% to 1.55p.

Barely more than two weeks after reporting its interims, musical instruments retailer Gear4Music (LON: G4M) says trading has been very strong over the past weekend. This means expectations have been raised and the full year EBITDA forecast increased from £15.2m to £16.7m. The share price increased 6.64% to 305p.

FALLERS

Physiomics (LON: PSY) chief executive Peter Sargent is leaving the company in May 2026. Dr Jim Millen will resume the position of executive chairman of the mathematical modelling and data science company after the departure until a replacement is appointed. The share price slipped 22.7% to 0.29p.

North Sea oil and gas company Deltic Energy (LON: DELT) recommended a 7.46p/share bid from Rockrose Energy, which is owned by Viaro Energy, at the end of June but completion is still dependent on the North Sea regulator NSTA. NSTA wants further information in order to reach a decision to grant the change of control of licences.  The long stop of the bid has been extended to the end of March 2026. The share price declined 13.4% to 5.5p.

Rockfire Resources (LON: ROCK) has temporarily ceased drilling of hole HMO-009 at the Molaoi zinc deposit in Greece because of difficult drilling conditions. It is moving to the next drill hole, where signs of mineralisation are good. HMO-009 will be redrilled at the end of the current campaign, where there are another 28 holes to be drilled. HMO-008 was also terminated early. The share price slid 12.1% to 0.1275p.

Alba Mineral Resources (LON: ALBA) is preparing to commence drilling and blasting at the Clogau gold mine, having undertaken work on shafts at the mine. Analysis of samples from the Aries deposit at the Motzfeldt critical metals project in South Greenland, where the explorer is acquiring a 51% interest, should start early next year with mineralogical test work results in the second half of January. Alba has completed a three hole drilling programme at Finnsbo copper gold rare earths project in Sweden, where it is earning an interest. The share price fell 10.7% to 0.0125p.

The FTSE 100 was marginally weaker on Wednesday as Sainsbury’s, banks, and other retailers weighed on the index.

London’s leading index had started the session broadly flat, but minor gains gave way to minor losses, and the FTSE 100 was down 0.2% at the time of writing.

“Miners did their best to prop up the FTSE 100, but opposing forces from the banking, pharma and utility sectors were too great to keep the index in positive territory,” said Dan Coatsworth, head of markets at AJ Bell.

“Hong Kong’s Hang Seng index was a notable mover, falling 1.3% as nearly all sectors apart from basic materials and industrials were in the red. China’s CSI 300 index was also weak, with both indices hit by disappointing services data.”

China-focused banks HSBC and Standard Chartered were among the top fallers as sentiment took a knock.

Investors may have been surprised to see miners such as Anglo American, Antofagasta, and Glencore among the top risers, given their dependence on Chinese demand. Antofagasta was the top riser after Jefferies analysts raised their price target to 3,500p.

Sainsbury’s was the FTSE 100’s top faller after Qatar sold a £270m stake in the business. Sainsbury’s shares fell 3.7% with Tesco and Marks and Spencer falling between 1% and 2% in sympathy.

“The stock has enjoyed a good run since April, thanks to business progress. A food-first strategy has reaped significant rewards and Sainsbury’s has managed to breathe new life into the business,” Coatsworth explained.

“QIA might take the view that now is a good time to cut its exposure as Sainsbury’s regaining its mojo is one thing, taking it to another level is more challenging.”

US rate cut

US stocks were also relatively subdued overnight, with the S&P 500 gaining just 0.2% despite a strong run-up in tech shares.

Support is creeping back into US stocks as traders eye a possible US rate cut. But this has yet to translate to any meaningful optimism in UK and European shares.

That said, ff hopes of a rate cut solidify in the coming sessions, it wouldn’t be a surpirse to see global stocks melt up into the announcement next week.

“Recent data continues to support the narrative of a soft landing in the US economy – a delicate balance between slowing growth alongside resilience in the US labour market,” explained Oliver Faizallah, Head of Fixed Income Research at Charles Stanley, part of Raymond James Wealth Management.

“This backdrop has given the US central bank the Federal Reserve room to ease policy, with markets now fully pricing in a 25bps rate cut at next week’s meeting, a sharp shift from just 30% odds a month ago. The move reflects both supportive economic indicators, dovish Fed commentary, and speculation around future leadership.”