Investors turned their gaze to the forthcoming economic data from the eurozone and the US. The FTSE 100 slipped by 0.3% in the morning, a slight dip after Monday's upbeat finish.
The spotlight is on eurozone inflation and unemployment figures, alongside the US ISM services PMI. Analysts are eagerly dissecting these numbers for clues on the next moves by the European Central Bank and the Federal Reserve.
In the eurozone, consumer price inflation is expected to tick up to 2.4% in December from November's 2.2%. Despite this inflationary nudge, the ECB is likely to stick to its guns with a 25 basis point interest rate cut.
UK retailers had a mixed bag over the Christmas period. The BRC-KPMG retail sales monitor revealed a 3.2% year-on-year rise in total retail sales for December, up from 1.9% the previous year. Overall, UK retail sales in 2024 grew by a modest 0.7%, with food sales up 3.3% and non-food sales down 1.5%.
In the corporate arena, Next, the UK clothing and homewares giant, has upped its annual forecast following a surprisingly strong Christmas. Full price sales jumped 6.0% year-on-year in the nine weeks to December 28, beating the company's previous 3.5% growth guidance. Next now anticipates a pretax profit of £1.01 billion for the year ending January 25, a 10% rise from the prior year.
GSK made headlines with its B7-H3 antibody-drug conjugate receiving breakthrough therapy designation in the US for treating bone cancer, specifically relapsed or refractory osteosarcoma. This designation is designed to speed up the development and review of treatments for serious conditions with unmet medical needs.
On the international front, the US Defense Department has added Chinese tech titan Tencent Holdings and battery maker Contemporary Amperex Technology Co to its list of companies linked to Beijing's military.
Meanwhile, the political scene is abuzz with the resignation of Justin Trudeau after more than nine years at Canada's helm. Speculation is rife that Mark Carney, the former governor of the Bank of Canada and the Bank of England, could step into Trudeau's shoes.
Things to read today:
- 10 Disruptive technologies for 2025 (MIT Technology Review).
- Pharma ain't what it used to be (Wall Street Journal).
- Why the world's powers are engaged in a battle for microchips (Bloomberg).
- Why does Elon Musk care about Britain's flagging reputation (The Spectator).
- An interview with Sam Altman, a powerful and therefore dangerous guy (Bloomberg).