Market Report: stocks open soft, gold and copper move higher
Matt Britzman, senior equity analyst, Hargreaves Lansdown: “Global markets opened on the back foot this morning, with the FTSE 100 edging lower, alongside softer European markets and US futures pointing to a muted Wall Street open later today as investors grapple with fresh political turbulence and rising geopolitical risk. Sentiment has been shaken by news of a criminal probe into Fed Chair Jerome Powell and his claims of political pressure from the Trump administration, while unrest in Iran and talk of possible US intervention add another layer of concern.
Looking ahead, it’s a busy week for updates, with Persimmon first in focus after ending 2025 with improving sales rates, a firmer order book, the benefit of below‑average pricing and its in‑house materials arm helping offset affordability pressures. Vistry follows, where rising sales rates and supportive housing policy will be tested against last year’s missteps, with investors looking for evidence that tighter cost control and more partner‑funded deals are rebuilding momentum. Moving to the AI space, TSMC’s results will reveal whether strong revenue growth and rumoured price hikes confirm that demand for AI chips remains robust – and whether it can bring enough new supply online to keep that momentum going through 2026.
Alphabet is showing no signs of easing up, after a standout year that put to rest any doubts about its AI ambitions. Google’s parent company has just announced its Universal Commerce Protocol, built with heavyweight partners like Shopify, Etsy, Wayfair, Target and Walmart, which aims to make AI‑powered shopping far smoother and more consistent. The system will let users discover, compare and buy products directly inside Google Search and the Gemini app, with streamlined checkout options on the way. And with the protocol designed to work across any AI platform, it’s clear that AI‑led shopping isn’t a distant trend anymore – it’s just around the corner.
Gold climbed to a fresh record high this morning, as a cocktail of geopolitical tension and questions over Federal Reserve independence sent investors flocking to safety. Escalating rhetoric between Iran and the US, alongside revelations that Chair Powell faced threats from the White House over past decisions, heightened the sense of political risk. A softer US jobs print on Friday added fuel to the gold trade, with traders leaning into expectations of two rate cuts this year ahead of a pivotal inflation report later this week.
Copper pushed toward $6 per pound to start the week, supported by tightening supply and fresh concerns that new US tariffs on refined metals could reroute flows and strain global availability further. Disruptions across major South American producers, from weather to labour unrest, are adding to the pressure just as demand accelerates. And with copper sitting at the crossroads of two powerful structural trends, the AI build‑out and the global energy transition, it’s the metal to watch for 2026.”