Economy January 28, 2026

London Stocks Slip as Healthcare and Banks Weigh on FTSE 100

Precious metals and energy gain while investors await Fed decision and parse corporate results

By Sofia Navarro
London Stocks Slip as Healthcare and Banks Weigh on FTSE 100

On Jan 28 the FTSE 100 declined as losses in healthcare and bank shares offset gains in miners and energy names. The domestically focused FTSE 250 rose, hitting its highest level since January 2022 earlier in the session. Market attention centred on corporate earnings and an awaited U.S. Federal Reserve policy update.

Key Points

  • FTSE 100 fell 0.4% by 1056 GMT while the FTSE 250 rose 0.1% and earlier hit its highest level since January 2022.
  • Healthcare stocks were the largest drag on the FTSE 100, down 1.9%; GSK fell 1.9% and AstraZeneca dropped 2.3%.
  • Precious metal miners climbed 2.1% as gold rose above $5,300 per ounce; energy stocks gained about 1% with Shell and BP each up roughly 1%.

Jan 28 - Britain's blue-chip index moved lower on Wednesday, driven by declines in healthcare and banking stocks as investors digested quarterly results and awaited a policy announcement from the U.S. Federal Reserve.

By 1056 GMT the FTSE 100 had fallen 0.4%. In contrast, the FTSE 250, which tracks more domestically focused companies, rose 0.1% and reached its strongest level since January 2022 earlier in the trading day.

Sector movers

Healthcare names were the largest detractor from the FTSE 100, sliding 1.9% across the sector. Major pharmaceutical companies were among the losers, with GSK down 1.9% and AstraZeneca off 2.3%.

Banks also pulled back, falling 1.2% after having reached record highs in the previous session. Individual movers in the group included Investec, which slipped 1.6%, while HSBC Holdings and Close Brothers each retreated by more than 1%.

Luxury stocks came under pressure following a sharp fall in the sector's heavyweight: French luxury conglomerate LVMH plunged 6.7% after releasing disappointing fourth-quarter results. U.K. luxury-related retailers felt the ripple effects, with Burberry down 2.5% and Watches of Switzerland falling 2%.

Commodities and energy

Precious metal miners recovered from prior losses, rising 2.1% as gold extended its rally above $5,300 per ounce. Energy stocks also strengthened, advancing about 1% as oil rose to its highest level since late September. Major oil companies Shell and BP each gained roughly 1%.

Separately, a note appearing in market commentary cited Caribbean energy minister Roodal Moonilal saying that the companies are seeking U.S. licenses to extract natural gas from fields in Trinidad and Tobago and Venezuela.

Investors remained focused on upcoming corporate earnings for clearer reads on business conditions amid geopolitical tensions and trade uncertainties. Attention was also fixed on the Federal Reserve's policy update later in the day, with most traders expecting the U.S. central bank to hold interest rates steady.

On the company front, Pets at Home jumped 5.3% after the pet care retailer said it would maintain its full-year profit forecast despite reporting lower third-quarter revenue, which it attributed in part to price cuts implemented as part of a retail turnaround strategy.

Market research and stock-selection tools were also mentioned in coverage: ProPicks AI evaluates HSBA alongside thousands of other companies every month using more than 100 financial metrics, aiming to identify opportunities by assessing fundamentals, momentum, and valuation. The commentary noted the tool does not carry bias and has highlighted notable past winners. Promotional copy related to the service was included in the day's market commentary.


This report summarises market moves, key sector performances and key corporate headlines that influenced trading on Jan 28.

Risks

  • Markets are awaiting the U.S. Federal Reserve policy decision, which could prompt volatility if outcomes diverge from the widespread expectation that rates will be held steady - this impacts interest-rate sensitive sectors such as banks and real estate.
  • Corporate earnings remain a near-term source of uncertainty; disappointing results, like LVMH's weak fourth-quarter release, can weigh on related sectors including luxury retailers and discretionary stocks.
  • Geopolitical tensions and trade uncertainties could influence company outlooks and commodity markets, affecting exporters, energy firms and supply-chain sensitive sectors.

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