- FTSE soft as investors digest UK consumer datapoints
- US markets back in their sweet spot
- Intel dives on weak guidance
- Tesla jumps as Robotaxi’s ditch the safety driver
- Oil tiptoes higher
- Intuitive Surgical ends the year on a high
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“UK markets look cautious this morning, with the FTSE 100 set to open flat as investors work through a mixed but improving picture for the UK consumer. The latest GfK survey showed confidence edging up again in January, with households feeling noticeably better about their own finances even as views on the wider economy remain gloomy. That “less bad” trend is feeding through to spending, with December retail sales beating expectations despite the usual seasonal noise. Taken together, the backdrop points to steady, rather than spectacular, consumer growth ahead, underpinned by rising real wages, a more active housing market and gradually falling interest rates.
US markets closed firmly higher yesterday as investors leaned back into risk, encouraged by easing geopolitical tensions and a reassuring run of economic data. A blockbuster upside surprise in Q3 GDP, steady inflation readings and falling jobless claims painted a picture of an economy that’s still growing without overheating. Futures are pointing higher again this morning, suggesting the positive mood may carry through into today’s session as markets put political turbulence in the review mirror, for now at least.
Intel shares have fallen sharply after hours despite a respectable quarter, as investors focused on a disappointing outlook. Shares had enjoyed a strong run in recent months on improving sentiment rather than hard fundamentals, leaving little room for error once guidance hit the tape. Intel is in a tough spot, pursuing an unproven dual strategy of manufacturing chips for others while still designing its own, a balancing act that’s proving difficult to execute.
Tesla shares pushed around 4% higher yesterday and kept climbing after the bell, as investors were given plenty to get excited about beyond the near‑term numbers. Elon Musk’s rare appearance in Davos helped refocus attention on the longer‑term vision, with tangible progress on Optimus robots, still pencilled in for a public launch around 2027. More importantly, autonomy took a big step forward: supervised full self‑driving is set to roll out in Europe and China soon, while in the US, footage of Robotaxi’s carrying paying passengers without safety drivers marked a milestone many have been waiting years for. With next week’s earnings likely to look soft, keeping the narrative firmly anchored on future growth is crucial in supporting Tesla’s still‑lofty valuation.
Oil prices ticked higher, with Brent nudging back towards $65 a barrel as geopolitics returned to the spotlight. Fresh warnings from President Trump towards Iran revived concerns around supply risks in a key OPEC producer, helping prices recover some lost ground. That move was reinforced by Saudi Aramco pushing back against fears of a global oil glut, pointing to strong demand.”
The author holds shares in Tesla.
Derren Nathan, head of equity research, Hargreaves Lansdown:
“Intuitive Surgical, the dominant provider of robotic surgery systems worldwide, had a strong end to the year. Fourth quarter revenue of $2.4 billion (+19%) was well-trailed in a pre-release earlier this month. But better than expected growth in underlying earnings to $2.53 per share was enough to drive the share price up 2.4% in yesterday’s after-market. Guidance for growth in surgical procedures in 2026 is a little on the light side at 13-15%, but Intuitive is known for its conservatism when entering a new period. The company’s technology offers compelling benefits to surgeons and patients alike. Yet there’s still a large addressable market to go for. With new use cases emerging, and management continuing to push the bar on innovation, Intuitive looks well placed to remain in growth mode for many years to come.”
