Key events
The gains in silver, which surged above $80 an ounce for the first time on Monday before falling back, have catapulted the London-listed miner Fresnillo to the top of the FTSE 100.
Mexico’s Fresnillo is the world’s leading silver producer.
Victoria Scholar, head of investment at interactive investor, said:
With volumes predictably thin, the FTSE 100 has opened flat after closing modestly lower on Christmas Eve with defence stocks dragging. This morning Fresnillo is the top gainer while defence stocks like BAE Systems continue to underperform.
It has been an impressive year for the FTSE 100, gaining around 20%, outperforming Europe and the US and is on track for its fifth consecutive annual gain.
Gold is under pressure as investors look to lock in profits before year-end after a very strong run. Potential progress between Trump and Ukrainian president Zelenskyy have also dampened demand for precious metals. Silver has had a wild ride today, breaking above $80 earlier to hit a record high before pulling back. Silver’s gains have propelled Fresnillo shares to the top of the FTSE 100 this morning. The silver producer gained as much over 4%, hitting a new high.
Oil is staging gains, with WTI and Brent crude both up over 1% each, trading above $57 and $61 respectively supported by Middle East tensions and US-Ukraine talks.
Most Asian markets struggled overnight with the Nikkei under pressure. The Bank of Japan said it sees the case for further hikes in its Summary of Opinions from its December meeting. The Kospi however outperformed with a 2.2% gain.
US futures are pointing flat after the S&P 500 hit an intraday all-time high on Friday. After the Liberation Day sell-off in April, the major US indices have enjoyed a remarkable recovery, on track to log very strong gains for the year with the Nasdaq Composite leading the charge thanks to AI-fuelled gains. However concerns about overvaluations and an AI bubble look set to continue to dominate market chatter into next year.
European defence stocks have fallen after the meeting between Donald Trump and Volodymyr Zelenskyy in Florida.
The US president has claimed a deal to end the war in Ukraine is “closer than ever” although he admitted that “thorny” questions over the future of the eastern Donbas region have yet to be resolved. Trump said a draft agreement to end the war was nearly “95% done”.
Shares in Italy’s aerospace and defence company Leonardo tumbled more than 4% while Germany’s Rheinmetall lost 2.5% and Hensoldt fell by 3%. London-listed BAE Systems has fallen by 1.5%.
European stocks edge higher to new record
UK and European stocks have edged higher at the open, pushing the Stoxx 600 index to a new peak.
Europe’s Stoxx 600 index of leading shares rose by 0.1% to a fresh record intra-day high. Germany’s Dax and France’s CAC have both risen by 0.1% while Spain’s Ibex is flat and Italy’s FTSE MiB has slipped 0.17%.
There aren’t many signs of a Santa rally in London. The FTSE 100 index is up just 8 points, or 0.07%, at 9,878, close to the 10,000 mark.
Grenfell firms still receiving multimillion-pound public contracts, analysis finds
Survivors of the Grenfell Tower fire have called on the government to stop companies implicated in the disaster from receiving public contracts, after it was revealed several were still in receipt of multimillion-pound deals.
New analysis found at least 87 contracts across the public sector in the government’s own database involve companies criticised in the phase 2 report into the Grenfell fire, published in September 2024, though some contracts may have since expired.
The Labour MP Joe Powell, who produced the analysis, said:
Grenfell bereaved, survivors and our community are still fighting for justice eight and a half years after this entirely preventable tragedy, and it’s extraordinary that public money is continuing to be spent with companies who were cited in the public inquiry.
Air passengers warned of higher fares as regional airports face bigger tax bills
Air passengers are being warned to brace for ticket rises as regional airports across the UK face “unprecedented” rises in property tax next year.
Analysis of government data for the Press Association has revealed regional airports are among those facing the steepest increases in business rates of any sector in the UK amid an overhaul of property valuations underpinning the tax.
While London’s Heathrow and Gatwick are also being hit with huge increases in their business rates bills, the figures show that the most extreme cases are focused outside London, with regional airports poised to suffer.
Global tax firm Ryan’s calculation of Valuation Office Agency data found that the rateable values have jumped more than six-fold in some cases in the latest property revaluation, sending tax bills soaring higher.
Even with transitional relief, which limits increases to 30% next year, regional airports will still endure some of the largest cash increases in the country.
And most airports face their bills more than doubling over the next three years.
My colleagues Aisha Down and Dan Milmo have taken a closer look at Nvidia.
Nvidia is, in crucial ways, nothing like Enron – the Houston energy giant that imploded through multibillion-dollar accounting fraud in 2001. Nor is it similar to companies such as Lucent or Worldcom that folded during the dotcom bubble.
But the fact that it needs to reiterate this to its investors is less than ideal.
Now worth more than $4tn (£3tn), Nvidia makes the specialised technology that powers the world’s AI surge: silicon chips and software packages that train and host systems such as ChatGPT. Its products fill datacentres from Norway to New Jersey.
This year has been an exceptional one for the company: it has struck at least $125bn in deals, ranging from a $5bn investment into Intel – to facilitate its access to the PC market – to $100bn invested in OpenAI, the startup behind ChatGPT.
Hargreaves Lansdown’s shares to watch in 2026
“2025 has been a year of two halves for equity investors,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
Overall, markets have held up well, but heading into 2026, global tensions and a mixed economic outlook mean there could be sharper share price swings next year.
The good news? Uncertain times can suit long‑term investors. Trying to call every short‑term turn rarely works. A better plan is to spread money across regions, sectors and asset types, rather than relying on one theme or one market.
For investors looking to diversify and strengthen their portfolios for the years ahead, we’ve shared three of our five shares to watch for 2026 and beyond, each with a unique thematic investment case.
Marks & Spencer goes into 2026 looking to rebuild after a tough year. A cyber‑attack hit online sales, mainly in Fashion, Home & Beauty, but bosses expect systems to be back to normal by spring. The Food division keeps winning customers, and if spending on digital and margins pays off, profits could bounce back.
Novo Nordisk had a rough 2025 as supply was tight, rivals pushed harder, and pricing came under pressure in diabetes and obesity care. Even so, demand is still huge. More factory capacity, stronger action against illegal copy drugs and the recent approval of its oral weight‑loss pill could lift confidence.
Nvidia remains a key name in the AI build‑out. Competition is rising, and some big buyers want more than one supplier, but the firm’s fast pace of new chips and strong position in advanced computing keep it central to big tech spending.
Introduction: Silver and other precious metals hit new peaks before falling back; oil price rises after Trump-Zelenskyy meeting
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
As the final trading week of the year gets under way, the rally in precious metals has continued – silver, platinum and palladium hit new all-time highs before falling back.
Asian stocks are mixed, while the dollar is hovering near a three-month low on expectations of more interest rate cuts from the US Federal Reserve next year.
Gold is down 1.3% this morning at $4,472 an ounce, but is on track for its biggest annual gain since 1979, with a rise of more than 70%.
Silver climbed above $80 an ounce for the first time on Monday, before falling back 3.3% to around $76 an ounce, amid profit-taking. It is up from $56 at the start of December, and just $29 an ounce at the start of 2025. The surge prompted a warning from Elon Musk that manufacturers could suffer the consequences.
Copper prices have also risen, by more than a third this year, and are near the record $13,000 a tonne level, as demand for the red metal rises.
Charu Chanana, chief investment strategist at Saxo Bank, said precious metals have been boosted this year by rate cut hopes and hedging against geopolitical and fiscal uncertainty. She told Reuters:
Add supply worries and the move has turned parabolic. But the late-year, near-vertical surge, especially in silver, also raises the risk of higher volatility.
In Asian stock markets, South Korea’s Kospi rose by 2.2% to a two-month peak and is on pace for its strongest annual gain since 1999, while the Taiwan exchange rose by 0.9%. Other markets fell slightly. MSCI’s broadest index of Asia-Pacific shares climbed by 0.2%. Most Asian markets have notched up double-digit gains this year despite Donald Trump’s global trade tariffs.
It remains to be seen whether the Santa rally, which pushed Wall Street stocks to record highs on Christmas Eve, reaches London in this shortened trading week. Markets are closed on Thursday for New Year’s Day. European futures point to a slightly higher open and trading volumes are likely to remain thin as the Christmas holiday period continues.
Oil prices have risen by 1% amid Middle East tensions and the latest Ukraine peace talks. Unrest in the Middle East, including Saudi air strikes in Yemen and Iran’s declaration of a “full-scale war” with the US, Europe, and Israel at the weekend, has triggered concerns of supply disruptions. Brent crude, the global benchmark, is trading 61 cents higher at $61.25 a barrel.
The US president said a deal to end the war in Ukraine is “closer than ever” but has admitted that “thorny” questions over the future of the eastern Donbas region have yet to be resolved, after a two-hour meeting on Sunday with Volodymyr Zelenskyy in Florida. Trump said a draft agreement to end the war was nearly “95% done”.
The Agenda
