UK Equities Edge Higher as FTSE 100 Rises 0.5% Amid US Fed Chair Nomination

FTSE 100 Sees Gains as Trading Concludes

London's equity markets experienced a mixed close on Friday, January 30, 2026, with the benchmark FTSE 100 index advancing by 0.5% to settle at 10,223.54 points. In contrast, the more domestically focused FTSE 250 ended the day largely unchanged, registering a slight decline of 0.1% to close at 23,253.36 points. The broader market sentiment was shaped by significant international developments, particularly concerning the leadership of the US Federal Reserve.

US Federal Reserve Chair Nomination Influences Market

A key driver for Friday's trading was the announcement that US President Donald Trump had nominated former Federal Reserve governor Kevin Warsh to succeed Jerome Powell as the next Federal Reserve chair. This news prompted a 'hawkish' reaction across global markets, according to Kathleen Brooks, research director at XTB. The US dollar strengthened following the announcement, while precious metals experienced notable declines. Gold futures on Comex fell by 6.4% to $4,977.60, and silver was down 19% at $92.605.

Sectoral Performance and Company Highlights

The fall in gold and silver prices exerted pressure on mining stocks. Companies such as Fresnillo and Endeavour Mining on the FTSE 100, and Hochschild Mining on the FTSE 250, saw their shares decline. Conversely, several banking stocks recorded gains, with Lloyds Banking Group, NatWest, and Barclays all closing higher. Additionally, credit-checking firm Experian saw its shares rise after announcing a $1 billion share buyback programme. AstraZeneca also edged up following news of an expansion in its weight-management pipeline.

On the domestic front, data released by the Bank of England indicated that mortgage approvals had fallen to an 18-month low in December, a development that surprised analysts. Meanwhile, the London Stock Exchange Group (LSEG) experienced a 1.1% dip on the FTSE 100 after unveiling proposals to reduce the free-float requirement for non-UK incorporated companies seeking inclusion in its indices.

Weekly and Broader Market Context

For the week, the FTSE 100 recorded an overall gain of 0.8%, while the FTSE 250 saw a weekly decline of 0.3%. The market's performance continues to be influenced by a combination of global economic signals and specific corporate news, with investor attention keenly focused on central bank policies and their potential impact on various sectors.