The FTSE 100 (^FTSE) traded sideways and US indices and European stocks were mixed on Monday, as the market looks ahead to this week’s US jobs report and inflation data for a read on the economy.

On Wednesday, the Bureau of Labor Statistics (BLS) is set to release the delayed January jobs report. The focus will be on whether further signs of cracks in the labour market emerge after ADP’s private-sector payrolls update last week fell short. Inflation data from the BLS is also set for release Friday morning.

Wall Street also continues to debate the AI disruption risk to software companies, with a sharp decline in shares of monday.com (MNDY). The stock fell as much as 23% after the company offered revenue and profit guidance that fell short of Wall Street forecasts.

In the UK, prime minister Keir Starmer faced his latest test of political confidence with the resignation of two key aides.

Rumours of leadership challenges are stirring as questions swirl over his appointment of Peter Mandelson to the US ambassador role, even as Mandelson’s links to Jeffery Epstein were known. Starmer has said he made a mistake and the former ambassador lied to him about the extent of his relationship with the convicted child sex offender.

Over the weekend, Starmer’s chief of staff Morgan McSweeney resigned, taking responsibility for backing Mandelson in the top US ambassador job. On Monday morning, Number 10 communications director Tim Allan also stepped down to “allow a new No10 team to be built.”

Read more: Gold prices surge back above $5,000 as investors look ahead to US jobs and inflation data

“I wish the PM and his team every success,” Allan said.

Starmer will meet with his MPs in private later today amid calls for him to step down.

An investigation is taking place and is set to shine light on how Mandelson conducted business during his time in Downing Street under Gordon Brown and beyond. The Epstein files revealed he had passed sensitive and market-moving information to Epstein and his clients, and advised on how to apply pressure on policies, such as limits on banker’s bonuses.

  • London’s premier index was 0.3% higher as markets opened, but traded flat by the closing bell following news of Tim Allan’s resignation.

  • The more domestically focused FTSE 250 (^FTMC) moved 0.5% higher.

  • Over in Germany, the DAX (^GDAXI) ticked up 1%.

  • France’s CAC 40 (^FCHI) rose 0.4%.

  • The pan-European STOXX 600 (^STOXX) gained 0.6%.

  • The pound rallied 0.4% against the dollar (GBPUSD=X), trading close to the $1.37 mark.

  • By late-morning on Wall Street, the Dow Jones Industrial Average (^DJI) fell slightly, pulling back from its first ever close above 50,000. Meanwhile, the S&P 500 (^GSPC) was 0.5% higher and the tech-heavy Nasdaq Composite (^IXIC) rose 0.9%.

LIVE COVERAGE IS OVER 17 updates

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  • Keir Starmer loyalists line up to back him

    After calls for a new prime minister have come from Labour MPs, others in Starmer’s top team (past and present) are lining up to back him.

  • Ocado to cut costs and jobs

    Ocado is drawing up plans that could put up to 1,000 jobs at risk as the retail technology group renews its focus on cutting costs and scaling back its workforce, reports have said.

    The business, which runs robotic warehouses for supermarket chains, is in the early stages of talks over redundancies that would amount to about 5% of its global workforce, the Sunday Times reported.

    No final decisions have been made and Ocado would consult with its staff over any planned cuts, according to the report.

    A spokesman for Ocado Group declined to comment on the reports, but said: “We regularly review our operations to ensure we’re set up for long-term success.

    “If and when decisions are made that affect our people, we are committed to communicating with them directly and ensuring they are supported throughout.”

    The business unveiled plans nearly a year ago to scale back its research and development workforce in the UK, having spent more than £800m in this area over the previous four years.

    It was also aiming to substantially reduce its technology costs from around £290m in the 2024 financial year to £60 million by 2027.

  • How US stocks are faring at the opening bell
  • SBI shares hit record high

    Pedro Goncalves writes:

    Shares in State Bank of India rose 6% to a record high on Monday after the country’s largest lender reported quarterly profit that exceeded expectations and posted industry leading growth in net interest income.

    The stock was trading at 1,130 rupees (£9.16), its highest level on record, and was on track for its strongest daily performance since June 2024. It was the top performer on the benchmark Nifty 50 (^NSEI) index and the banking index.

    The state backed lender reported standalone net profit of 210.28 billion rupees for the three months to 31 December, up from 168.91 billion rupees a year earlier. Analysts had forecast profit of 173.26 billion rupees, according to data compiled by LSEG.

    Net interest income rose 9% to 451.9 billion rupees, supported by growth in domestic lending. Net interest margin, a key measure of profitability, was unchanged at 3.12%.

  • NovoNordisk stock surges as rival pulls weight-loss pill

    Our US team writes:

    Novo Nordisk (NVO) stock rose 6% before the bell on Monday after Hims & Hers cancelled the launch of its $49 copy of a weight-loss pill following legal threats from the ​Danish group and the US Food and Drug Administration.

    Shares of Hims (HIMS) fell 14.8% in premarket trading on Monday.

    Novo’s stock faced pressure recently after rival Eli Lilly’s shares rallied last week following the release of its fourth quarter earnings, and it now expects 2026 revenue to grow, compared to Novo, which said it expected sales to fall this year.

  • Bitcoin selling continues

    After a dire week for the digital asset it is now below the $69,000 mark, having sold off about 3% in this morning’s session. Over the past six months the digital asset is more than 40% lower.

  • EU tells Meta to let chatbots access WhatsApp

    Competition regulators in the EU have told WhatsApp parent Meta (META) it must allow third-party chatbots access to its messaging platform, after the social media giant blocked AI assistants from accessing customers’ data.

    The EU sent Meta a “statement of objections” — a step in an antitrust probe — which the company now has a chance to reply to.

    The EU is “considering quickly imposing interim measures on Meta, to preserve access for competitors to WhatsApp while the investigation is ongoing, and avoid Meta’s new policy irreparably harming competition in Europe,” competition chief Teresa Ribera said, as quoted by Reuters.

    A Meta spokesperson said: “The facts are that there is no reason for the EU to intervene.”

    “There are many AI options and people can use them from app stores, operating systems, devices, websites, and industry partnerships. The commission’s logic incorrectly assumes the WhatsApp Business API is a key distribution channel for these chatbots,” the spokesperson said.

  • Gold prices back above $5,000

    Vicky McKeever writes:

    Gold prices jumped on Monday morning, as investors looked ahead to key economic data releases due out of the US this week.

    Gold futures (GC=F) surged 1.3% to $5,046.70, per ounce at the time of writing, while spot gold rose 1.2% to $5,030.61 an ounce.

    As a result of delays due to the partial US government shutdown, January’s employment report will be released on Wednesday, followed by January’s consumer price index (CPI) inflation reading on Friday.

    Deutsche Bank analysts said in a note on Monday morning that their economists “expect headline and private payrolls to rise by 75k (consensus at +69k and +75k respectively), a modest improvement relative to recent trend rates. If this holds, they anticipate the unemployment rate staying at 4.4%.”

    As for Friday’s inflation reading, Derren Nathan, head of equity research at Hargreaves Lansdown, said: “January’s annualised price increases are expected to fall from 2.7% to 2.5% but that’s been aided by falling oil prices.”

    “Core inflation is expected to remain steady at 2.6% and unless that starts to nudge down, we may not see another rate cut during the final months of Jerome Powell’s reign at the Fed, even if the labour market tightens further,” he said.

  • InPost stock jumps

    Russ Mould, investment director at AJ Bell, said:

  • NatWest to acquire wealth manager Evelyn partners

    NatWest Group has agreed to buy wealth management firm Evelyn Partners for £2.7bn, marking the bank’s first major acquisition since returning to private ownership.

    The announcement follows reports that the banking group had seen off competition from rival Barclays for the takeover move.

    Acquiring Evelyn, one of the UK’s biggest wealth managers, brings together its £69bn in assets under management with NatWest’s £59bn.

    The London-based firm, which rebranded from Tilney Smith & Williamson in 2022, offers financial planning and investment management and operates consumer platform BestInvest.

    The deal is expected to boost NatWest’s fee income by about a fifth and increase the size of its private banking and wealth management business.

    NatWest’s chief executive Paul Thwaite said: “Bringing together these two leading businesses creates a unique opportunity to provide financial planning, savings and investment services to more families and people across the UK.”

    Read more on Yahoo Finance UK

  • FTSE 100 risers and fallers
  • Markets higher as Takaichi elected

    Asian markets were lifted following the election of prime minister Sanae Takaichi.

    The ruling Liberal Democratic Party took around a two-thirds majority of the lower house, paving the way for more fiscal stimulus and tax cuts.

    “We will prioritise the sustainability of fiscal policy. We will ensure necessary investments. Public and private sectors must invest. We will build a strong and resilient economy,” Takaichi said on Sunday.

    The benchmark Nikkei (^N225) rose 3.9% in the session, and broke through 57,000 points for the first time.

    The yen also strengthened.

  • Here’s the US stock futures chart
  • US stock futures catch breath

    Our US team writes:

    US stock futures took a breather on Monday as investors geared up for a busy stretch of economic data and corporate earnings, following a turbulent week that ended with the Dow reaching a record close above 50,000.

    Dow Jones Industrial Average futures (YM=F) were little changed, as were contracts on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F).

    On Friday, the Dow (^DJI) surged more than 1,200 points, or 2.5%, notching its first-ever close above 50,000 after briefly crossing the milestone intraday. The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) both finished up around 2%, as Wall Street recovered from a week of heavy losses driven by a tech-led sell-off.

  • Good morning!

    Hello. It’s Monday again.

    This morning we’re watching the OECD consumer price index and Chinese inflation figures.

    In Japan, there was a decisive election win for Sanae Takaichi with the Liberal Democratic Party, which sent Asian stocks higher (more on that later).

    UniCredit (UCG.MI) and Plus500 (P55.F) are among companies reporting corporate results today.

    Let’s get to it.