London open: FTSE nudges down ahead of Fed, US tech earnings
By Michele Maatouk
Date: Wednesday 28 Jan 2026
(Sharecast News) - London stocks nudged lower in early trade on Wednesday as investors eyed the latest policy announcement from the Federal Reserve and earnings from three of the 'Magnificent Seven'.
At 0855 GMT, the FTSE 100 was down 0.1% at 10,195.62.
Emma Wall, chief investment strategist at Hargreaves Lansdown, said: "It's a big day for Big Tech as the market awaits earnings from Meta, Microsoft and Tesla later today - and Apple reporting tomorrow.
"These are the companies which can move not just their own share price but that of the whole market, and in particular the eagle eared will be listening to Elon Musk's commentary on the earnings call where more detail is often provided on financial forecasts and long-term strategy for the business."
As far as the Fed is concerned, expectations are for interest rates to remain at 3.5% to 3.75%. Wall said Chair Jerome Powell's statement may trigger volatility.
"Powell has been vocal in recent weeks about the President's plot to oust him and some market twitchers expect further comment today - potentially even regarding Powell's intentions to stay on the Committee after his term as Chair ends this year.
"Technically he can stay on the Committee until January 2028, which the market will interpret as higher for longer, for even longer, interest rates."
In equity markets, the likes of GSK and AstraZeneca, which derive a significant chunk of their earnings in US dollars, were hit by weakness in the US currency.
Meanwhile, precious metals miner Fresnillo and gold miners Endeavour and Hochschild all shone as gold prices kept rising amid the plunging dollar.
Susannah Streeter, chief investment strategist at Wealth Club, said: "The dollar has shot off on another slippery slide, as Trump's spin on the currency's decline sparked another drop in confidence. The dollar's drop is giving extra shine to gold, which is on a seemingly unstoppable run upwards.
"The pound is now at levels not seen since September 2021, touching $1.37 before falling back slightly. The sharp moves in currencies, with sterling strengthening are acting as a dampener on the FTSE 100. It puts pressure on the overseas earnings of listed multinationals, with pharma giants GSK and Astra Zeneca, chemicals company Croda, and fashion house Burberry among the fallers in early trade."
Burberry was also knocked lower by disappointing results from French luxury group LVHM.
Pets at Home rallied after saying full-year underlying earnings were set to be in line with expectations despite a fall in third-quarter revenues.
British Land edged lower after agreeing to buy Life Science Reit as it looks to ramp up its presence in the fast-growing science and technology sector. The deal values Life Science Reit, which last autumn said it would pursue a managed wind down, at £150m, a premium of around 21%.
Life Science Reit, whose shares shot up nearly 20% on the news, said it now believed a sale would provide a "superior outcome" for shareholders.
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