FTSE 100 Slips as Banks and Healthcare Retreat

By Reuters – London, 28 January 2026

London’s benchmark FTSE 100 index surrendered ground on Wednesday, finishing lower as a broad weakness in healthcare and banking stocks dampened sentiment, while luxury brands also felt the chill after weaker‑than‑expected results from a major French house. The slide comes as investors digest a fresh wave of corporate earnings and prepare for a key United States Federal Reserve policy announcement later in the day.

By mid‑morning trading, the FTSE 100 had slipped roughly 0.4 per cent, marking a pause in recent gains for Britain’s prime blue‑chip gauge. In contrast, the domestically focused mid‑cap FTSE 250 eked out a modest rise of about 0.1 per cent, briefly touching its loftiest level since January 2022.

Sector trends tilt negative

Healthcare stocks proved the principal drag on the index, with the sector declining close to 2 per cent as heavyweight pharmaceutical groups shed value. Both GlaxoSmithKline and AstraZeneca saw their shares fall markedly, reflecting investor caution as scrutiny on earnings intensified.

Banks, having rallied to multi‑session highs in the previous session, also retraced part of their advance. The sector lost around 1.2 per cent, with industry names such as Investec, HSBC Holdings and Close Brothers all ending lower on the day.

Luxury goods stocks came under additional pressure following a steep plunge in shares of LVMH after it reported disappointing fourth‑quarter results. The broader luxury space, including British brands like Burberry and Watches of Switzerland, tracked the sell‑off lower. Analysts noted that softening margins and cautious commentary from management at LVMH weighed on sentiment across comparable peers.

Offsetting gains in commodities and energy

Not all areas of the market saw red. Precious metal miners rallied strongly, with the segment gaining over 2 per cent as gold extended its rally to fresh highs in dollar terms — a move underpinned by a weaker US currency and risk‑off trading. Energy stocks also showed resilience, advancing around 1 per cent as oil prices climbed to their highest levels since late September. Shares in oil majors Shell and BP both gained ground amid news that they are pursuing licences to extract natural gas in the Caribbean and Latin America, providing a near‑term catalyst for investors.

Stand‑out performers

One of the day’s bright spots was the pet care retailer Pets at Home, whose shares surged over 5 per cent. The company reassured markets by reiterating its full‑year profit guidance despite reporting a sequential drop in third‑quarter revenue, largely attributed to a strategic price‑cutting initiative as part of its ongoing turnaround plan.

Market outlook

With geopolitical tensions and global trade uncertainties still swirling, participants are looking for clearer signals on the economic outlook from upcoming earnings releases. A key focal point will be the Federal Reserve’s policy statement later in the session, where most market watchers currently expect interest rates to be left unchanged.

Key Market Moves – 28 January 2026