Must read: new high for FTSE 100, gold, car data, Nikkei
ii’s head of investment rounds up the morning’s big news.
6th January 2026 08:57
by Victoria Scholar from interactive investor
GLOBAL MARKETS
The FTSE 100 has opened higher, hitting fresh all-time highs, outperforming the DAX and CAC 40, with UK retailers Tesco (LSE:TSCO), Next (LSE:NXT) and Sainsbury (J) (LSE:SBRY) at the top of the basket thanks to an improved profit outlook from Next.
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Adding to the sense of optimism, Worldpanel reported robust supermarket sales, with Tesco revenue rising 4.3% in the 12 weeks to December. It also said UK grocery inflation eased in December.
Price target upgrades are helping to lift other UK stocks like Lloyds Banking Group (LSE:LLOY) and Barclays (LSE:BARC). And Prudential (LSE:PRU) is staging gains thanks to the launch of a $1.2 billion share buyback programme.
On Monday, the FTSE 100 closed above 10,000 for the first time, gaining over 0.5% driven by mining stocks and defence companies. Goldman Sachs has now raised its 12-month target on the FTSE 100 from 10,300 to 10,400, suggesting that after a strong year, there could be more room to run for the UK index.
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According to the SMMT, Britain’s motor industry enjoyed a strong performance last year - 2025 new car registrations hit 2 million for the first time since Covid, rising 3.5%. However, not all car makers are having the same experience amid shifting consumer preferences - separate data from New AutoMotive showed that Tesla Inc (NASDAQ:TSLA)’s UK sales dropped by 8.9% last year while BYD sales soared.
Overnight, the Nikkei closed at a record high, gaining 4% so far this year thanks to strong demand for Japanese equities on the back of the business-friendly political backdrop and a positive read across from gains on Wall Street. Tech stocks spurred the Japanese index up 26% in 2025 with the potential for more gains this year.
The financial impact of Jaguar Land Rover’s cyber attack last year has been revealed to some extent – retail sales fell by 25.1% year-on-year in the October to December quarter and wholesale volumes dropped by 43.3%, sending shares in owner Tata Motors into the red. Most analysts are on the fence towards the stock with an average ‘hold’ rating.
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US futures are pointing to a higher open after a strong session on Wall Street, with the Dow gaining 1.23%. Oil companies like Chevron Corp (NYSE:CVX), Exxon Mobil Corp (NYSE:XOM) and ConocoPhillips (NYSE:COP) rallied on Monday following the US intervention in Venezuela thanks to its major oil reserves that have attracted the attention of the US oil giants. The US ISM Manufacturing PMI disappointed in December, hitting 47.9, below forecasts and down from November, logging the third consecutive monthly drop.
The precious metals rally continues, with silver and gold in the green and on track to log a third straight day of gains. On Monday, gold enjoyed its best session since October as the uncertainty around Venezuela sparked demand for safe-haven assets. Copper has also surged to an all-time high.
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