Key Points
- The FTSE 100 index closed down 3.65 points, or 0.04%, at 10,235.29 on Friday, 16 January 2026, after hitting an intra-day high of 10,257.75.
- Weakness in mining stocks dragged the index lower amid declines in commodity prices, including copper down 3.0%, silver down 3.7%, and gold falling from $4,616.76 to $4,594.24 per ounce.
- Key miners affected: Endeavour Mining -2.7%, Anglo American -2.4%, Antofagasta -2.9%, Glencore -2.5%; other reports noted Rio Tinto -2.2%, Fresnillo -0.5%.
- For the week, FTSE 100 rose 1.1%, FTSE 250 up 1.2% at 23,311.37, AIM All-Share up 2.1% at 804.75.
- Bank of America downgraded mining to ‘underweight’ from overweight, citing stretched valuations and divergence in commodities like 50% copper rally vs 30% oil drop.
- Gainers included British Land +1.4%, Land Securities +1.3%, BAE Systems +2.3%; Pearson fell 4.1% on US contract loss.
- European indices mixed: CAC 40 -0.7%, DAX -0.2%; US markets little changed ahead of Martin Luther King Day holiday.
- Comments from Dan Coatsworth of AJ Bell on quiet trading day; David Morrison of Trade Nation on risk-off tone.
The FTSE 100 experienced a subdued close on Friday as mining giants weighed heavily on the benchmark index, capping gains in a week otherwise marked by records and optimism. This pullback came despite an intra-day peak, reflecting investor caution amid fluctuating commodity prices and ahead of key economic data. Multiple outlets, including the Evening Standard and Trading Economics, highlighted the mining sector’s reversal after its role in propelling the FTSE to recent highs.
Why did mining stocks drag the FTSE 100 lower?
In London, the FTSE 100 was pegged back by weak mining stocks, a key factor behind recent index strength, as reported across sources like Shareprices.com and the Evening Standard. The price of copper fell 3.0%, and silver slumped 3.7%, giving up some recent gains, while gold nursed less severe falls, quoted at 4,594.24 dollars an ounce on Friday, down from 4,616.76 on Thursday.
As detailed by Alliance News staff in Shareprices.com, in response, Endeavour Mining fell 2.7%, Anglo American declined 2.4%, Antofagasta dipped 2.9%, and Glencore fell 2.5%. Trading Economics reporter noted similar pressures, with heavyweight miners Rio Tinto down 2.2%, Anglo American -1.7%, Glencore -1.6%, Antofagasta -1.5%, tracking declines in metals such as copper and tin as prices retreated from recent record levels; precious metals producers Fresnillo -0.5% and Endeavour Mining -1.2% also lost ground as gold and silver paused after a sharp rally.
What did Bank of America say about the mining sector?
Strategists at Bank of America downgraded the mining sector to ‘underweight’ and lifted energy to ‘market weight’, as covered by the Evening Standard and Shareprices.com. “After sharp outperformance for mining, the potential downside risks stemming from the sector’s macro drivers are becoming hard to ignore,” BofA said.
BofA noted that a historical divergence in commodity prices has led to a decoupling among European resources with a surge in metal prices over recent months, including a 50% rally in copper, alongside a “roll-over” in energy prices, with the oil price down 30% to four-year lows recently. As a result, the copper-to-oil ratio has risen close to a 40-year high, which in turn has led to significant divergence between European resources sectors, with mining outperforming by 40% since April, while energy has underperformed by nearly 15%. “Resources sector pricing looks stretched in both directions,” BofA added.
Which stocks gained amid the FTSE dip?
Heading higher were property companies British Land and Land Securities, up 1.4% and 1.3% respectively, on hopes lower interest rates will spark a sector upturn, while BAE Systems, up 2.3%, remained in favour amid geopolitical jitters, according to Evening Standard reporting. The biggest risers on the FTSE 100 were BAE Systems, up 47.0 pence at 2,088.0p, NatWest, up 13.8p at 652.8p, Smiths Group, up 50.0p at 2,612.0p, Schroders, up 8.6p at 467.0p and National Grid, up 20.5p at 1,201.5p.
On the FTSE 250, Genus led risers, advancing 7.8%, after reporting that adjusted pretax profit for the six months to December 31 would be about £50 million, ahead of expectations, as noted by Alliance News in Shareprices.com. Berenberg pointed out it was “the second guidance raise in the past three months, making it one of the standout performers within our coverage.” “Importantly, the upgrades are being driven by strong trading in the PIC (pigs) business, which reflects the benefits of the group’s shift towards a royalty-driven model. This is increasing the defensiveness and predictability of earnings and sets a very positive tone for a year that we believe has more positive catalysts to come”, the bank added.
What caused Pearson’s sharp decline?
Pearson ended a miserable week for investors, with a further 4.1% decline, as per Evening Standard and Shareprices.com coverage. The educational publisher has seen its shares fall 12% this week after a poorly received trading update. A previously undisclosed contract loss for US student assessment in New Jersey, which will drag on first-half growth, was blamed for the stock fall, although analysts note Pearson is confident that the loss of the contract will have no bearing on other renewals in the coming years.
The biggest fallers on the FTSE 100 were Pearson, down 39.6p at 939.0p, Entain, down 23.8p at 703.0p, Antofagasta, down 105.0p at 3,560.0p, Endeavour Mining, down 110.0p at 3,996.0p and Glencore, down 12.4p at 478.6p.
How did broader markets and commodities perform?
Energy stocks added to the drag in some reports, with Shell down 0.7% after snapping a six-day winning streak and BP also trading 0.6% lower, according to Trading Economics. Brent oil traded higher at 64.48 dollars a barrel on Friday, up from 63.55 late on Thursday.
In European equities on Friday, the CAC 40 in Paris closed down 0.7%, while the DAX 40 in Frankfurt ended 0.2% lower. Stocks in New York were little changed. The Dow Jones Industrial Average was slightly lower, while the S&P 500 index was up 0.1%, as was the Nasdaq Composite. The pound was quoted lower at 1.3382 dollars at the time of the London equities close on Friday, compared to 1.3388 on Thursday. The euro stood at 1.1596 dollars, lower against 1.1607.
What are analysts saying about the market tone?
“Investors have been kept on their toes year-to-date with non-stop geopolitical issues, and mixed messages from the business world. A quieter day on the corporate reporting calendar gave investors a chance to catch their breath and take stock of events,” said Dan Coatsworth, head of markets at AJ Bell, as quoted in Evening Standard and Shareprices.com. “There was a slightly negative tone across European stock indices on Friday,” commented David Morrison, senior market analyst at Trade Nation. “It appeared that investors were more comfortable taking some risk off the table, no doubt mindful that US markets will be closed on Monday for Martin Luther King Day.”
Despite the day’s dip, the broader trend remains positive, with the FTSE still up roughly 0.9% for the week so far, marking its third consecutive week of gains, per Trading Economics. Earlier in the week, mining stocks had surged on record metal prices, with Fresnillo and Endeavour Mining leading gains as reported by IG.com, but reversed by Friday.
What economic data influenced sentiment?
Economic data showed that US industrial production rose faster than expected in December. The Federal Reserve said that on a monthly basis, industrial production increased by 0.4% in December, the same pace as in November, which was revised up from 0.2%. It was better than the FXStreet-cited consensus of a 0.1% uptick. On an annual basis, total industrial production was 2.0% higher in December than a year prior.
Shannon Glein, analyst at Wells Fargo, said the underlying details show a “key theme from last year – everything high-tech and AI related outperformed”. “We expect this trend to persist going forward, but it’s also worth noting that the slow yet steady ascent in all other industrial production on a year-ago basis is a sign that broader activity may be starting to recover,” she added.
What’s next for the FTSE and investors?
Monday’s global economic calendar features a slew of data from China, including GDP, retail sales, and industrial production. In Canada, inflation figures will be published, while US financial markets are closed for Martin Luther King Jr Day. Monday’s UK corporate calendar has a trading statement from building materials firm Marshalls. Later in the week, trading statements are due from luxury goods retailer Burberry, sports retailer JD Sports Fashion and miner Rio Tinto.
For professionals navigating these volatile markets dominated by commodities and macroeconomic shifts, Financial Modelling courses offer essential skills to analyse sector divergences like copper versus oil ratios and forecast index movements with precision. Similarly, Investment Analysis training equips analysts to evaluate downgrades such as BofA’s mining call and spot opportunities in risers like defence stocks amid geopolitical tensions.