The FTSE 100 opened in red as the index fell 5 points to 9,866.08, while sterling weakened, with GBP/USD falling about 0.1% to near 1.34, reflecting a stronger dollar backdrop.
Across Europe, sentiment was similarly muted. Germany’s DAX edged down 0.07%, while France’s CAC 40 declined 0.08%, as traders awaited fresh macro cues in a holiday-thinned week.
Despite the flat index performance, Mining shares emerged as leaders, tracking strong precious metals prices. Fresnillo increased by 4.38%, reaching £3,340, backed by the ongoing rally of silver and gold.
The gold prices decreased by 1.3% to around $4,472 per ounce, and are on track to achieve their strongest annual increase since 1979, with the year-to-date rise being more than 70%.
Silver briefly surged above $80 per ounce, marking a historic milestone before mild profit-taking set in.
Other mining majors also advanced. Glencore gained around 1.45% to £400, while Anglo American added 1.03% to £3,043, benefiting from optimism around metals demand.
Metlen Energy & Metals also gained 1.58% to £45.05, while healthcare heavyweight AstraZeneca rose 0.95% to £13,804.
British American Tobacco slipped about 1.4% to £4,156, while BAE Systems fell 1.46% to £1,686. Retailer Next and hotel group InterContinental Hotels Group also declined with 0.19% and 0.43%, respectively.
Games Workshop Group declined 0.53% to £18,780.
International Personal Finance surged after saying it had accepted a takeover offer from BasePoint Capital in a deal worth £543 million. IPF shareholders will get £235 a share in cash, a 31% premium to the closing price when talks between the two specialist lenders started in July.
Grangex AB announced a strategic deal with Anglo American to restart Norway’s Sydvaranger iron ore mine, with Anglo American relinquishing a $37 million royalty in exchange for full offtake rights.
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With limited UK economic data scheduled in the near term, the focus turns to US data and the December FOMC minutes, which will include pending home sales and the Dallas Fed manufacturing index.
Deutsche Bank analysts expect that the economy will be quiet during the transition into the new year unless something unexpected happens.
Investor surveys reveal that there is resilience beneath the surface: almost 47% of UK investors increased their savings in 2025, while 74% of Financial Advisor clients intend to invest more in 2026, which reflects a long-term trust in the market, although there are still geopolitical and macroeconomic uncertainties.