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Stock Markets January 28, 2026

London market slips as earnings season weighs; pound steadies above $1.37

FTSE 100 retreats as company results and guidance shifts influence UK equity performance; luxury names and miners lead sector moves

By Avery Klein
London market slips as earnings season weighs; pound steadies above $1.37

UK blue chips fell on Wednesday as investors processed corporate earnings and guidance updates. The FTSE 100 dipped 0.5% while the pound eased 0.4% to 1.3786 against the dollar. Broader European markets were lower, led by luxury names after LVMH signalled caution despite modest quarterly sales growth. A range of UK-listed companies from retail to mining and transport reported mixed operational updates that moved individual stocks.

Key Points

  • FTSE 100 declined 0.5% and GBP/USD fell 0.4% to 1.3786 as investors reacted to corporate earnings and updates.
  • Company-specific news produced divergent stock moves: Debenhams upgraded EBITDA guidance, Pets at Home saw stabilising retail volumes, while Fresnillo cut 2026 production guidance.
  • Luxury sector weakness after LVMHs cautious commentary and mixed fourth-quarter sales spread losses to peers including Kering, Richemont, Herms and Burberry.

European and UK equities came under pressure on Wednesday as a raft of corporate reports and operational updates shaped investor sentiment. By 1314 GMT the FTSE 100 had slipped 0.5%, while sterling weakened 0.4% against the dollar to 1.3786. The decline in London was mirrored across the continent, with Germany’s DAX down 0.6% and France’s CAC 40 falling 1.5%.

Market snapshot

  • FTSE 100: down 0.5% as of 1314 GMT
  • GBP/USD: down 0.4% to 1.3786
  • DAX: down 0.6%
  • CAC 40: down 1.5%

UK corporate round-up

A number of London-listed companies released results and trading updates that changed intra-day moves in their shares.

  • Pets at Home Group PLC (PETSP) said retail volumes returned to growth in its third quarter and kept its full-year profit outlook intact, citing support from expansion in its veterinary services business. The group reported retail like-for-like consumer revenue fell 1.1% in the quarter, an improvement from declines of 2.8% and 1.7% in the first and second quarters respectively. Management expects full-year 2026 profit before tax to be in line with consensus of 93 million.
  • Debenhams Group (DEBS) saw its shares rise more than 7% after upgrading its full-year earnings outlook. The retailer cited stronger-than-expected trading across its core brands and improved performance at PrettyLittleThing, and now foresees adjusted EBITDA for total operations of 50 million for the year ending February 28, 2026, up from around 45 million guided in November.
  • Fresnillo PLC (FRES) trimmed its 2026 production guidance, attributing the revision to operational phasing and lower grades at key mines. The precious metals miner lowered its silver production forecast to 42-46.5 million ounces from 45-51 million ounces and cut gold guidance to 500-550 thousand ounces from 515-565 thousand ounces. The company described these revisions as equating to a 9% reduction in silver guidance and a 4-5% reduction in gold forecasts versus consensus estimates.
  • Marstons PLC (MARS) shares fell more than 12% after reporting flat like-for-like sales for the 17 weeks ended January 24. The companys trading update showed it lagged peer Mitchells & Butlers, which posted a 4.5% increase in like-for-like sales over a 15-week period through January 10.
  • Mobico Group PLC (MCG) jumped over 13% after confirming advanced discussions with German transport authorities. The company said one of its units is engaged with five public transport authorities in Germany to renegotiate rail contract terms in North Rhine-Westphalia and adjacent regions, with the stated aim of creating a more sustainable business model.
  • Life Science REIT PLC (LABS) surged 19.4% after British Land Company PLC (BLND) put forward a recommended cash and share offer valuing each Life Science REIT share at about 42.8 pence. That price represents a 21% premium to the January 27 closing price of 35.4 pence per share. The transaction is sized at roughly 50 million and is structured as 14.1 pence in cash plus 0.07 new British Land shares for each Life Science REIT share.

Luxury sector weakness

Luxury names were notable draggers across European markets after LVMH Moet Hennessy Louis Vuitton SE (LVMH) reported cautious commentary alongside modest holiday-quarter performance. LVMHs shares fell as much as 7% on the day, and the sell-off spread through the luxury complex. Kering dropped more than 3%, while Richemont, Herms and Burberry declined in the range of 1% to 2.5%. Salvatore Ferragamos shares were down about 6.3% following its year-end update the prior day.

In its quarterly figures LVMH posted 1% organic sales growth in the fourth quarter, a result that beat expectations for a slight decline. Nonetheless, the groups fashion and leather goods division - a barometer for high-end consumer demand - recorded a 3% fall in organic sales, a factor markets interpreted as a signal of caution on future demand.

Outlook

Trading in London and across Europe remained sensitive to company-level earnings momentum and guidance adjustments. The days moves underline how discrete operational updates from retailers, miners and property transactions can meaningfully affect individual equity performance and sector sentiment, even as broader macro drivers remained unchanged in the reporting.

Risks

  • Operational and production revisions at miners such as Fresnillo could pressure metals-related earnings and sector sentiment.
  • Retail and leisure names face sales volatility, illustrated by Marstons flat like-for-like sales and Debenhams upgraded outlook, creating uncertainty for consumer discretionary stocks.
  • Luxury sector caution from LVMH and subsequent declines across peers introduces downside risk to European luxury and related consumer stocks.

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