FTSE 100: Index Rises as Gold Surge Lifts Miners While Defence and Retail Stocks Lag

The FTSE 100 index opened the day positively amid strong commodity prices and specific industrial stocks balanced the downward performance of defence, retail and consumer stocks. The index increased by 28.5 points to 10,178.55 as energy and mining stocks showed positive results despite investor caution.

Miners and Industrials Lead 

Gold-linked stocks were among the strongest performers as bullion prices pushed closer to the $5,000-per-ounce mark. 

Endeavour Mining rose 1.64% to £4,334, benefiting from sustained demand for precious metals as a hedge against inflation and geopolitical uncertainty.

Rolls-Royce Holdings gained 1.01% to £1,256.50 and Bae Systems advanced 1.16% to £2,008, reflecting steady investor appetite.

Among others, Ashtead Group rose 1.34% to £5,314, while Fresnillo gained 1.27% to £4,136.

Babcock Slides on CEO Succession Update

Babcock International fell 2% to £1,433 after announcing that chief executive David Lockwood will step down later this year. 

While the company reiterated that it remains on track to meet its 2026 margin target of 8%, markets reacted cautiously to leadership changes during a period of operational restructuring.

Lockwood, who has led the company’s turnaround since 2020, will be replaced by nuclear division head Harry Holt.

Retail and Consumer Stocks Remain Under Pressure

Retail-linked stocks struggled despite a modest rebound in December sales data. Burberry slipped £22.5 to £1,252, while International Consolidated Airlines Group dipped 1.58% to £423.50.

ICG also declined 1.91% to 1,903.

Retail sales volumes rose by a better-than-expected 0.4% in December, following falls of 0.1% in November and 0.8% in October. 

The Office for National Statistics (ONS) recorded a decline of 0.3% across the fourth quarter but said sales rose by 2.5% in 2025. They are still down by 1.5% compared with their pre-Covid pandemic level in February 2020.

Also Read: Stock Market Today: Nifty at 25,211, Sensex Falls 0.33%, IndiGo Drops 2.9% After Q3 Results

Global Markets: Japan Steady, Gold Shines

In Asia, Japan’s Bank of Japan kept interest rates unchanged at 0.75%, lifting its inflation outlook and reinforcing expectations of potential rate hikes later this year. The Nikkei 225 closed 0.3% higher.

Gold continued to outperform globally, trading near $4,953 an ounce, extending one of its strongest rallies since the pandemic. 

The rise comes despite easing trade tensions, underlining gold’s appeal as a long-term store of value.