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The FTSE 100 was down 0.07% at 10,143.44, while the more domestically-focused FTSE 250 slipped 0.23% to 23,317.53.

As AJ Bell’s Dan Coatsworth put it, “it’s a calmer end to a chaotic week on the markets,” noting that after recent swings “it’s only natural for people to pause and take stock of events.”

The bid for safety remained evident in precious metals, with gold continuing to attract inflows despite easing immediate market stress.

Coatsworth said the metal had “nudged ahead to trade ever closer to $5,000 an ounce as investors were reluctant to let go of their safety blanket, just in case Donald Trump woke up with another controversial idea.”

That caution helped temper equity gains even as broader risk sentiment stabilised.

UK economic data helps underpin sentiment

Sentiment was underpinned by a raft of upbeat UK economic data.

The S&P Global flash UK PMI composite output index rose to 53.9 in January from 51.4 in December, its strongest reading since April 2024 and the ninth consecutive month above the 50 mark that separates expansion from contraction.

Services activity climbed to a 21-month high of 54.3, while manufacturing output also strengthened, with the PMI rising to 51.6.

Chris Williamson at S&P Global said businesses had “kicked up a gear” at the start of the year, pointing to resilient demand and optimism consistent with quarterly GDP growth approaching 0.4%, though he cautioned that job losses persisted as firms grappled with high costs.

PwC economist Jake Finney said the data suggested the economy had begun 2026 on a firmer footing, but warned that persistent cost pressures, particularly in services, could keep the Bank of England on hold in February.

Official figures also showed UK retail sales beat expectations in December, with volumes rising 0.4% against forecasts for a decline.

Patrick Munnelly at TickMill noted that “interpreting signals from this often-volatile series is no straightforward task,” highlighting that while sales volumes rose 2.1% on a three-month annual basis in the fourth quarter, they still fell 0.3% quarter-on-quarter.

“The reality likely lies somewhere in between,” he said, pointing to favourable weather and sporting events supporting food sales earlier in the year, while seasonal shifts such as Black Friday may have distorted more recent data.

The Office for National Statistics said strong demand for precious metals and higher supermarket sales helped offset weakness in non-food stores, with annual sales growth accelerating to 1.3%, though volumes remained below pre-pandemic levels.

ONS statistician Hannah Finselbach highlighted strong online jewellery sales driven by demand for gold and silver, while AJ Bell’s Danni Hewson said the headline increase masked a difficult Christmas for many high-street retailers amid cautious consumer spending.

Consumer confidence, however, remained subdued.

GfK’s long-running index edged up one point to -16 in January, marking a decade in negative territory.

Munnelly observed that while the headline move was modest, “perceptions of personal financial situations improved more significantly than the headline figure suggests,” even as households remained wary about the broader economic outlook.

GfK’s Neil Bellamy said consumers were showing resilience rather than optimism, focusing on what they could control while remaining unconvinced about the wider economy.

Broader global signals were meanwhile mixed.

Asian markets advanced as the dollar continued to weaken, with investors increasingly rotating into non-US assets.

Munnelly said “precious metals also soared to unprecedented levels,” with a weaker dollar helping push gold to an all-time high of over $4,965 an ounce.

In Japan, stocks rose and the yen softened after the Bank of Japan kept its policy rate unchanged at 0.75% while upgrading growth and inflation forecasts, a move that also weighed on bond futures.

Munnelly noted that signs were emerging that “investors are increasingly pulling away from US assets,” with record flows into emerging-market funds adding further pressure to the dollar.

BAE Systems higher, SSP Group reverses gains

On London’s equity markets, defence stocks were in focus, with BAE Systems trading higher as investors continued to favour names that have performed strongly over the past year.

Coatsworth said the FTSE 100 had been supported as investors “loaded up on three names that have served them well over the past year - Rolls-Royce, Endeavour Mining and BAE Systems.”

Shell rallied after a Reuters report said the oil major was considering a sale of its assets in Argentina’s Vaca Muerta shale play.

Watches of Switzerland was higher after it said late on Thursday that it had bought Texas-based Deutsch & Deutsch, a family-owned luxury watch and jewellery retailer that had been operating since the 1920s.

SSP Group reversed earlier gains despite backing full-year guidance and reporting a 5% rise in first-quarter like-for-like sales.

Babcock International edged lower after confirming chief executive David Lockwood will retire at the end of 2026, a move Coatsworth said might allow Lockwood “half a smile” given the shares had risen more than fivefold since he took the role in 2020.

C&C Group tumbled after warning on profits amid weak consumer confidence, with Coatsworth describing it as “a tough time to be running” the drinks group as profit warnings returned, while Rank Group slid after Deutsche Bank downgraded the stock to ‘hold’ and cut its price target sharply.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 10,143.44 -0.07%

FTSE 250 23,317.53 -0.23%

techMARK 5,933.79 0.76%

FTSE 100 - Risers

Beazley 1,152.00p 3.23%

Glencore 501.00p 2.21%

BAE Systems (BA.) 2,027.00p 2.12%

Fresnillo 4,168.00p 2.06%

Antofagasta 3,584.00p 1.91%

BP (BP.) 443.65p 1.57%

Rio Tinto 6,576.00p 1.39%

Centrica 184.10p 1.35%

Anglo American 3,378.00p 1.08%

Unilever 4,864.00p 1.00%

FTSE 100 - Fallers

Burberry Group 1,195.50p -6.20%

Admiral Group 2,650.00p -5.76%

Aviva (AV.) 619.40p -5.17%

easyJet 483.00p -2.98%

International Consolidated Airlines Group SA (CDI) 418.30p -2.79%

Spirax Group 7,200.00p -2.78%

Flutter Entertainment (DI) 12,990.00p -2.70%

Smurfit Westrock (DI) 3,054.00p -2.65%

Informa 913.80p -2.54%

JD Sports Fashion (JD.) 82.64p -2.34%

FTSE 250 - Risers

Me Group International 139.40p 4.65%

Hochschild Mining 702.00p 3.69%

Watches of Switzerland Group 534.00p 2.99%

Ceres Power Holdings 347.20p 2.72%

NCC Group 138.80p 2.67%

Harbour Energy 211.80p 2.62%

Foresight Environmental Infrastructure Limited 71.90p 2.28%

Endeavour Mining 4,366.00p 2.15%

Oxford Biomedica 871.00p 2.11%

CMC Markets 329.00p 2.02%

FTSE 250 - Fallers

C&C Group (CDI) 114.40p -11.04%

B&M European Value Retail S.A. (DI) 161.60p -7.18%

Wizz Air Holdings 1,318.00p -4.77%

Rank Group 93.80p -4.67%

Hays 46.60p -3.40%

Ocado Group 246.40p -3.22%

Close Brothers Group 518.00p -2.91%

Aston Martin Lagonda Global Holdings 62.00p -2.13%

Frasers Group 681.50p -2.01%

Carnival 2,097.00p -2.01%

Following the recent spin-off of its ice cream division into a newly listed Magnum Ice Cream Company, which houses brands like Magnum, Ben & Jerry's Wall's and Cornetto, Jefferies has updated its numbers for Unilever.

"We continue to see downside risk to both the valuation ([next 12 months] P/E from c17x to 15x), with earnings growth contained by pricing/operating margin pressures," according to analyst David Hayes.

Fourth-quarter results from the company on 12 February should see volume-mix improvements near 2%, with the full-year like-for-like sales growth rate somewhere between 4% and 6%, Jefferies said.

"But noise on FY26 operating margin dynamics and risk of US growth contribution slowing threatens sentiment we think in 1H26," Hayes added.

The broker has raised its target price for Unilever from 4,000p to 4,100p but kept a negative view on the shares, which were down 1% at 4,696p by 1230 GMT.

By Reshma Kapadia

International stocks saw surprisingly strong gains in 2025, with equity markets in export-driven countries such as Korea and China outpacing the S&P 500 even after the U.S. imposed the highest tariffs seen in decades. Non-U.S. markets could rally further in 2026, fueled by falling interest rates and rising corporate earnings.

The MSCI AC World ex-USA index returned more than 32% in 2025, nearly double the 18% total return of the S&P 500. Some foreign markets did far better, with the iShares MSCI South Korea exchange-traded fund up 95% and the iShares MSCI Brazil ETF ahead 49%. A weaker dollar helped returns but wasn't the only driver.

The past year marked the end of a 15-year stretch in which foreign markets lagged behind the U.S. — a reversal that could nudge more U.S. investors to look overseas for growth. In many markets, they will find less richly valued plays on artificial intelligence and electrification and improving economic and financial conditions.

Strategists at J.P. Morgan expect double-digit gains in 2026 across developed and emerging markets, spurred by robust earnings growth, lower interest rates, and fewer policy risks such as tariffs. Bargain-oriented investors such as Warren Chiang, manager of the GMO International Value fund and similarly named ETF, also see plenty of opportunity internationally.

In part, that's because non-U.S. markets are still relatively cheap. The MSCI World ex-U.S. index is trading for 15.6 times next year's expected earnings, roughly the same valuation as before its 2025 run. That reflects improving earnings and expanding price/earnings multiples, Chiang says.

The MSCI U.S. index sports a price/earnings multiple of about 23.

Across international markets, there is evidence of an improving backdrop. President Donald Trump's foreign and trade policies sparked a reset in Europe, where policymakers have pledged significant fiscal stimulus, including an increase in defense spending.

J.P. Morgan's Mislav Matejka, head of global and European equity, expects 10% to 20% earnings growth for the euro zone in 2026, as earnings benefit from fiscal stimulus and improving financing conditions, tariff risks diminish, and China's economy shows signs of stabilizing. An end to the Russia-Ukraine conflict would be an added plus.

The iShares MSCI Japan ETF returned 26% in 2025, but investors see more room for Japanese stocks to rise. Japan's recently elected prime minister, Sanae Takaichi, has business-friendly plans to lower taxes and offer incentives to bolster investment.

China's economy is still struggling, as evidenced by November's weak economic data. While Beijing is unlikely to unleash stimulus, recent comments from officials suggest the government has grown more serious about prioritizing a revival in domestic demand alongside a continued push for technological self-reliance. China has invested heavily in artificial intelligence, biotechnology, and other technologies.

Chinese AI stocks outperformed U.S. AI stocks this past year, but investors aren't fretting about a possible AI bubble in China, says Jitania Kandhari, head of macro and thematic research for emerging markets equity at Morgan Stanley. In China, the stocks' gains owed largely to rising price/earnings multiples. Shares will look cheap if earnings growth accelerates, Kandhari says.

Chinese tech earnings have bottomed after several years of declines, and recent results from cloud companies suggest reasons for optimism, she says.

While growth stocks have propelled U.S. indexes this year, value stocks have led markets higher in Europe and Japan. GMO's Chiang says he is still finding cheap companies overseas with good businesses, hefty margins, and significant competitive advantages. His top holdings include Germany's Deutsche Bank and Spain's BBVA, and Japanese industrial firms that are benefiting from reordered supply chains and government reforms.

Luiz Sauerbronn, a manager of the $2 billion Brandes International Equity fund , favors luxury-goods companies such as Kering, whose flagship Gucci brand has been hurt by weakness in China and a poor reception to recent collections. That created an air pocket in the stock, which has fallen by nearly half in the past five years, but was up 26% in 2025. Gucci, he notes, has recovered from setbacks in the past. Plus, Kering has a new CEO, Luca de Meo, formerly of Renault, who is trying to repair the company's balance sheet.

Richard "Trip" Clattenburg, manager of the $13.6 billion T. Rowe Price International Stock fund, likes quality stocks, many of which were more expensive, and thus overlooked when the rally in foreign stocks started last year. "There aren't many times when you get shots at relatively lower-risk, high-quality assets," he says.

Among Clattenburg's holdings: Unilever, which has new management, a road map for volume growth, and a 3.6% dividend yield. Clattenburg also owns Japan's Nippon Sanso Holdings, which makes industrial gases and has a lower valuation than larger rivals such as Air Liquide. He expects the company to get a lift from Japan's more business-friendly moves, but says the valuation provides a cushion if the global economy starts to sour.

Emerging market stocks still trade at a steep discount to the S&P 500, despite a preponderance of technology stocks in these markets. Within China, investors see opportunity in early adopters of AI. "China is a super-app country; it is harnessing [AI] in media, e-commerce, gaming, and travel," says Kandhari, who says semiconductor and semi-equipment companies, robotics, biotech, healthcare, and consumer-oriented digital platforms are among the beneficiaries. Brandes' Sauberbronn likes the outlook for Alibaba Group Holding, even after the stock's 75% rally in 2025, noting that near-term earnings are depressed because of the company's use of large subsidies to spur growth in its core e-commerce business. But the initiative is showing early signs of success. Alibaba also benefits from its strong position in AI with a "full stack model" that provides compute power, a cloud platform, AI models, and applications, he says.

India and Brazil aren't AI-focused markets and could fare better if the AI trade loses steam. India's market lagged behind in 2025 due to the negative impact of U.S. tariffs, sluggish economic growth, and investors' reallocation of assets to China. But T. Rowe's Clattenburg notes that the government and Reserve Bank of India are both pro-growth. Axis Bank is a private-sector bank that has cleaned up its loan book and should be an early beneficiary of an economic pickup, he says.

Brazil's market is tilted toward commodities and should continue to benefit as the push for electrification gains momentum. Also, inflation is expected to ease, which means monetary policy could loosen, helping stocks, says J.P. Morgan. Another plus: The Trump administration's focus on increasing influence in South America could mean more foreign direct investment, and an easing of the 50% tariffs President Donald Trump imposed on Brazilian goods earlier this year.

The Vanguard Total International Stock ETF (VXUS) offers an inexpensive way for U.S. investors to gain broad exposure to international markets, with about a quarter of its assets in emerging markets. Capital Group International Core Equity ETF (CGIC) provides a broad-based strategy, with about half its weighting in Europe and the U.K.

For investors who favor actively managed funds, three options include the $986 million GMO International Equity Fund IV (GMCFX), which has returned an average of almost 25% a year in the past three years, beating 99% of its peers; Brandes International Equity fund (BIEAX), which returned 24% a year in the same span and beat 98% of its peers; and the $16.7 billion T. Rowe Price International Value Equity fund (TRIGX), which averaged an annual return of almost 22% in the same three years, outperforming 86% of its peers, according to Morningstar.

Write to Reshma Kapadia at reshma.kapadia@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

By Aimee Look

One of Ben & Jerry's co-founders said the ice-cream maker's move to shake up the brand's independent board is an effort by Ben & Jerry's chief executive to seize control from the chair, and part of a wider upheaval among employees.

Ben Cohen, after whom the brand was named, said the way the business carries out its social mission is under threat. Part of his concern stems from a change in how Ben & Jerry's chief executive and its parent company, Magnum Ice Cream, treat the board.

CEO Jochanan Senf's presence on the board wouldn't be an issue if he respected its independence, according to Cohen.

"[Senf] has wrested control of the board from the chair," Cohen said in an interview. "There have been times when I think he's refused to allow the management to meet with the board."

The co-founder doesn't serve on the board himself, but remains a figurehead and employee at the company. Cohen said he was asked to join one board meeting, which is how he became aware of some of the issues.

Magnum declined to comment on Cohen's remarks. Senf didn't respond to a request for comment through Magnum.

Cohen, who founded the ice cream brand in 1978 with Jerry Greenfield, led the company as CEO until 2000, when the two sold it to Unilever. A unique agreement at the time gave an independent board decision-making authority over the brand's mission and marketing.

The rift at Ben & Jerry's came under the spotlight after Magnum was spun off from U.K. consumer-goods giant Unilever as a standalone company at the beginning of December. But Cohen and the brand's owners have clashed for years over what he says are attempts to further push Ben & Jerry's from the vision its creators set out.

The latest source of friction was the Vermont-based brand's move this week to set a nine-year cap on terms for directors on its independent board, rendering chair Anuradha Mittal and two other directors ineligible for re-election in 2026. Mittal has left her position, according to a person familiar with the matter.

In November, Magnum said Mittal no longer met the criteria to serve on the board as a result of an investigation.

Mittal had been on Ben & Jerry's board since 2007 and is also the founder and executive director of Oakland Institute, a policy think tank. She didn't respond to requests for comment.

Cohen said there is a chasm on the board between directors who are prioritizing corporate interests and those with Ben & Jerry's social mission at heart.

"There's a huge division on the board and that was anticipated in the original merger agreement," Cohen said.

The limit on board terms is Magnum's continuation of Unilever's shift away from the terms in the acquisition agreement with Ben & Jerry's, Cohen said.

Ben & Jerry's said in a statement the measures were aimed at strengthening its corporate governance and aligned to principles and policies across its parent company, the merger agreement and standard governance codes.

According to Cohen, Magnum dislikes the idea of having an independent board, because it doesn't have a similar structure for other brands. Magnum declined to comment on the issue.

When Cohen and Greenfield started the business, it had an equal three-part mission: the ice-cream, growing the business, and its social responsibility. Cohen said it is difficult for Unilever-or now Magnum-to approach Ben & Jerry's three-part mission in the way it was initially envisioned.

"We remain unequivocally committed to Ben & Jerry's three-part mission--product, economic and social--and its progressive, non-partisan values," Magnum said in a statement. Unilever didn't respond to a request for comment.

Cohen said many employees initially joined because of Ben & Jerry's social mission. Now, the shift has posed a challenging situation for employees who saw the social mission as core to their job, he added.

"People have compared it to, you know, the parents are fighting," the co-founder said. "There's a tremendous amount of uncertainty, upheaval."

Write to Aimee Look at aimee.look@wsj.com

By Aimee Look

One of Ben and Jerry's co-founders said the ice-cream maker's decision to remove three members from its independent board is an attempt by parent company Magnum Ice Cream to dismantle its social mission.

"This is a calculated escalation," Ben Cohen said. "Magnum is hollowing out the very things that give Ben & Jerry's its soul, credibility, and worth."

Cohen's comments come after the Vermont-based brand said on Monday that it plans to set a nine-year term limit for board directors. The move will push out three current board members and is part of a broader set of changes the company said it would make to the body that dictates its social mission.

The three board members who will now be term limited are Anuradha Mittal, Daryn Dodson and Jennifer Henderson. Co-founder Cohen said this indicates that Magnum wants to eliminate the board's independence.

Mittal, who is chair, has been on the board since 2007. She is also the executive director of Oakland Institute, a policy think tank that says land rights, the climate crisis, international aid and equity are among its core issues.

In November, Magnum said she no longer met the criteria to serve after investigations by external advisers. Mittal and Dodson didn't respond to requests for comment; Henderson couldn't be reached.

Cohen also said the company's decision to set a term limit strips the board of the legal authority that was agreed upon when Unilever acquired Ben & Jerry's more than two decades ago.

Magnum Ice Cream, the parent company of Ben & Jerry's, declined to comment.

Magnum went public earlier this month following a spinoff from Unilever. Co-founder Jerry Greenfield left the company in September, while Cohen remains an employee, but frequently voices his criticism.

Cohen and Greenfield, the brand's namesake co-founders, have long emphasized the company's social mission. When Unilever acquired the ice cream maker in 2000, an unusual agreement allowed an independent board to make decisions about the brand's mission and marketing.

What followed were years of friction between Ben & Jerry's and its parent Unilever, before the spinoff of Magnum. Unilever and the independent board clashed over decisions to take public stances on geopolitical issues, particularly the Israel-Gaza conflict.

"We are strengthening governance, increasing transparency, and committing ourselves to greater accountability," Ben & Jerry's Chief Executive Jochanan Senf said in a statement on Monday.

"These improvements matter because they will support us in our journey to become even more impactful and to drive progressive change for years to come."

Write to Aimee Look at aimee.look@wsj.com

By Aimee Look

Ben & Jerry's plans to set a term limit for directors in a move that would push three members off its independent board, part of a package of changes that affect the body that determines the direction of the company's social mission.

The Vermont brand said it was implementing a new guideline that caps board directors' terms to nine years, confirming a report earlier Monday by Dow Jones Newswires. Ben & Jerry's is part of Magnum Ice Cream, which listed earlier this month after a spinoff from Unilever.

Ben Cohen and Jerry Greenfield, the brand's namesake co-founders, have long emphasized the company's social mission. When Unilever acquired the ice cream maker in 2000, an unusual agreement allowed an independent board to make decisions about the brand's mission and marketing.

The change follows years of friction between Ben & Jerry's and its parent Unilever, prior to the spinoff of Magnum. Unilever and the independent board clashed over decisions to take public stances on geopolitical issues, particularly the Israel-Gaza conflict.

One of the directors who would be affected by the term limit is Chair Anuradha Mittal, who has been on the board since 2007. She is also the executive director of Oakland Institute, a policy think tank. In November, Magnum said she no longer met the criteria to serve after investigations by external advisers. Mittal didn't respond to requests for comment.

Co-founder Cohen said at the time that the plan to remove Mittal was aimed at eroding protections set out in the initial agreement in 2000.

Two other board members, Daryn Dodson and Jennifer Henderson, have also served longer than nine years and have been informed they won't qualify for re-election in 2026, according to two people familiar with the matter.

The new rules would establish consistency with Magnum's board-term limits, the people said. Mittal and Dodson didn't immediately respond to requests for comment, while Henderson couldn't be reached.

Ben & Jerry's is taking other governance steps, such as the requirement to comply with Magnum's "code of business integrity," the unit said. Company management may also consider moving funding away from its social-mission foundation--which has been around for about 40 years--and reallocating it to grassroots organizations through alternative means.

Meanwhile, an independent audit of Ben & Jerry's social-mission foundation before the Magnum spinoff found various issues, such as conflicts of interest, the company said. Management informed the foundation of these issues, but the trustees declined to make all the necessary changes, according to Ben & Jerry's.

The foundation released a statement on Dec. 7 saying that it hadn't received the final report of the audit and that Magnum had withheld funding for months. Mittal, the board chair, also sits on the foundation as a trustee.

"We have been told that the central unresolved issue is Unilever/Magnum's demand that Anuradha Mittal, chair of the Ben & Jerry's independent board, be removed as a foundation trustee," the foundation said in the statement.

Ben & Jerry's said Monday that this wasn't the case.

Earlier this month, Magnum Chief Executive Peter ter Kulve said Ben & Jerry's social mission isn't solely what drives consumption of its product, though it remains a core facet of the brand.

Write to Aimee Look at aimee.look@wsj.com