FTSE 100 Declines Amid Corporate Disappointments and Housing Market Weakness

Anon4461 · 2026-01-12T17:32:33+00:00

The FTSE 100 closed down as disappointing earnings and a weak housing market affected investor sentiment. Notable gains from some firms were overshadowed by significant losses from companies like Associated British Foods and Tesco, highlighting overall market challenges.

Anon4461

2026-01-12 17:32:33

Abstract generation in progress

U.K.'s premier equity index FTSE 100 closed in negative territory Thursday as disappointing corporate earnings reports and deteriorating housing market conditions weighed on investor sentiment. The benchmark index, which touched an intraday low of 9,997.50, was trading down 26.52 points or 0.26% at 10,021.69 during morning trading.

Economic headwinds emerged from the UK property sector, where house price momentum contracted significantly. Data from Halifax, a major mortgage lender, revealed that monthly house price growth decelerated to 0.3% in December from 0.6% in November. The median property valuation stood at GBP 297,755, marking the lowest level since June. On a month-on-month basis, prices contracted by 0.6%, representing a deterioration from November’s 0.1% decline and marking the second consecutive monthly retreat.

Corporate performance painted a mixed picture across the index. BAE Systems surged 5% following U.S. President Donald Trump’s announcement regarding increased defense expenditure priorities. Marks & Spencer advanced 2.1%, buoyed by robust food division sales throughout the Christmas shopping season. Endeavour Mining added 3.5%, while Coca-Cola HBC, Aviva, Standard Chartered, Natwest Group, Lloyds Banking Group, Diageo and EasyJet moved between 0.8 to 1.7% higher.

Downside pressures came from several major names. Associated British Foods plunged 11.8% to approach a nine-month trough after issuing a profit warning, citing Primark’s challenging Christmas amid soft UK apparel demand, softer European performance and turbulent U.S. retail conditions. Tesco declined 5.5% as UK comparable sales narrowly disappointed consensus expectations. Sainsbury, 3i Group, Mondi, Ashtead Group, Croda International, Shell, Barratt Redrow, ICG and Experian retreated 2 to 4%.

The broader market sentiment reflects how weak corporate momentum combines with structural housing market softness, creating headwinds for UK equities in the near term.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.