FTSE 100 opened the shortened festive session 5 points lower at 9,884.5, reflecting thin holiday volumes and mixed global cues as investors remained selective amid limited European participation and subdued risk appetite.

The FTSE 250 also edged lower, while several European markets were either closed or operating on a half-day basis, keeping overall liquidity constrained.

BP Divestment in Focus

BP has agreed to offload a 65% interest in its Castrol lubricants business to Stonepeak with an enterprise value of $10 billion.

The transaction will bring in $6 billion to BP, which will be used as a part of its bigger $20 billion divestment plan, mainly for debt cutting and concentration on the main activities.

BP's stock increased 0.57% as the investors were reacting to the news rather weakly, which might be an indication that their expectations had been mostly fulfilled before the announcement.

Gainers and Losers

Metlen Energy & Metals rose 2.16% to £44.95, as investors reacted positively to continued strength in metals prices. 

Schroders advanced 0.70% to £403, reflecting resilience in asset management stocks, while JD Sports Fashion also climbed 0.70% to £83.48.

Fresnillo gained 0.56% to £3,264, benefiting from gold and silver hitting fresh record highs, and Ashtead Group rose 0.50% to £5,218.

On the downside, Games Workshop Group slipped 0.84% to £19,000, while AstraZeneca declined 0.61% to £13,652, weighing on the healthcare segment. 

Endeavour Mining fell 0.46% to £3,940, despite broader strength in metals. Consumer staples also saw mild profit-taking, with Reckitt Benckiser down 0.30% to £5,968 and Unilever easing 0.20% to £4,848.

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Global Cues and Market Outlook

Wall Street markets finished higher last night, the S&P 500 index rising 0.46% to 6,909.79. The Dow Jones Industrial Average gained 0.16% to 48,442.41, and the Nasdaq Composite added 0.57% to 23,561.71. 

In the international markets, spot gold was trading around $4,460 per ounce, while US gold futures reached $4,500.

But the Asian markets were indecisive, and this limited the positive effect on UK stocks.

With sterling holding above $1.35, commodities were at all-time highs, and there was corporate restructuring in focus, the FTSE 100 is likely to remain range-bound through the festive period, where individual stock movements will still be the main source of market action instead of broad-based momentum.