London pre-open: Stocks to dip as investors mull UK CPI, eye Trump speech

21st Jan 2026 07:31

(Sharecast News) - London stocks were set to dip at the open on Wednesday as investors mulled the latest UK inflation data and looked ahead to a speech by US President Donald Trump at the World Economic Forum in Davos.

The FTSE 100 was called to open around 10 points lower.

Trump is due to deliver a speech at Davos at around 1330 GMT to discuss the Greenland dispute.

Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The Greenland chaos will remain the main course of the week and will be served again today, as Donald Trump prepares to rock the boat in Davos. The rally in gold to $4,876 per ounce is a good indicator of how uncertain and tense markets have become.

"I hope I am wrong - but there is a greater chance that the two sides of the Atlantic will not reach an agreement on Greenland in a single day. The UK and the Irish took almost a decade to reach an agreement on fishing rights; here, we are talking about an issue that could mark the beginning of the end for NATO.

"The implications would be huge - so huge that no one can fully grasp their extent. What we do know is that, either way, Europe will have to strengthen its defence. All members will need to set aside budgets for increased military spending in the coming years. Regardless of who takes the tariff or military hit today, tomorrow it will be someone else's turn."

On home shores, figures from the Office for National Statistics showed that inflation ticked higher in December, driven by rises in tobacco prices and airfares.

The consumer price index rose by 3.4%, up from 3.2% in the 12 months to November. Consensus had been for a more modest rise, to 3.3%.

In corporate news, JD Sports fashion held annual guidance as fourth-quarter like-for-like sales fell 1.8% with a return to growth in North America - the retailer's biggest market - offset by a weak performance in the UK and Europe amid a volatile consumer environment.

The company said it also expected "muted" market growth in fiscal 2027. Current-year gross margin is forecast to be 50 basis points lower, driven by price investments.

Fashion house Burberry reported a 3% rise in comparable retail sales in the third quarter of FY26, as the luxury group highlighted improving product momentum and stronger engagement with younger consumers.

Burberry said it had delivered higher quality revenues across channels and regions, helped by a shorter and more discreet markdown period compared with last year.

Educational publishing and services group Pearson announced that it will kick off a new £350m share buyback programme, half of which will be repurchased by the middle of May.

In a brief statement to the market, the firm said it "enters 2026 with momentum and confidence in delivering against market expectations and medium term outlook".