The FTSE 100 nudged up by a mere 0.1% in early trading, a modest move following its record highs on Monday. Meanwhile, the UK's unemployment rate climbed to 4.4% in November, the highest since May 2024, catching analysts off guard. Average earnings, excluding bonuses, rose by 5.6%, but investor sentiment towards the UK economy has taken a hit, with confidence plummeting over 10% this month.

Chancellor Reeves is currently in Davos, rubbing shoulders at the World Economic Forum to pitch the UK as a prime investment spot. Back home, the UK government is gearing up to green-light expansions at three London airports, including a third runway at Heathrow and increased capacity at Gatwick and Luton, all in the name of economic growth.

In the corporate realm, Marston's toasted a 3% sales increase for the 16-week period ending January 18, thanks to a festive surge in pub visits. Premier Foods is eyeing the upper end of profit forecasts, buoyed by strong holiday sales of branded products. Abrdn reported net inflows of £1.2 billion in Q4 2024, despite annual outflows. Meanwhile, Kier Group is flexing its financial muscles with a £20 million share buyback.

Across the pond, US President Donald Trump, back in the Oval Office, is treading carefully by postponing new tariffs and reviewing trade policies with China, Canada, and Mexico. In a swift move, Trump dismissed four senior officials from the previous administration and announced the US's withdrawal from the World Health Organization. He also pardoned over 1,500 individuals involved in the January 6, 2021, Capitol riot and put US foreign assistance programs on hold for 90 days pending a review. Marco Rubio's confirmation as Secretary of State marks the first Cabinet appointment of Trump's renewed term.

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