Daily market update: gold and silver, Hikma Pharmaceuticals, Next

Despite a sell-off in Asia, the FTSE 100 got off to a strong start on Monday, supported by higher precious metals prices.

The continuing surge in gold and silver helped lift Endeavour Mining and Fresnillo, and there was broader strength in the mining sector, despite weak Chinese data. The sickly industrial production and retail figures strengthen the argument for new stimulus efforts from the government in Beijing.

The relative lack of exposure to AI in the UK is proving more of a boon of late amid increased nervousness about valuations in the space.

The Federal Reserve may already have delivered its pre-Christmas rate cut but the release of non-farm payrolls and retail sales data tomorrow and an inflation reading on Thursday, all delayed by the recent shutdown in Washington, will be closely watched given the uncertainty around the trajectory of rates in 2026.

Meanwhile, the Fed’s counterparts in the European Central Bank and Bank of England prepare to make their own call on rates on Thursday.

Hikma Pharmaceuticals

Things may not have got any worse since November’s disappointing update but it’s no shock to see Hikma Pharmaceuticals CEO Riad Mishlawi head for the exit.

The shares have lost more than a quarter of their value in 2025. The most damaging part of last month’s trading statement was the reduction in medium-term profit growth expectations – which forced a broader reassessment of the investment case than a mere blip in trading would have done.

The company faces tough competition in the generic drugs space, but it also has been the master of its own downfall thanks to delays to a new UK manufacturing facility and issues in its supply chain.

In this context it is not a surprise to see Mishlawi, who has served with the company for decades and the last two years as CEO, carry the can and move into retirement.

Investors will hope the return of former boss Said Darwazah, who had been serving as executive chair, can inject renewed purpose into the business.

Next

Dan Coatsworth, Head of Markets at AJ Bell, comments:

Reports suggest Next is interested in buying shoe retailer Russell & Bromley or taking a stake in it.

Such a deal would expand Next’s ever-growing portfolio of brands that have gone through a difficult period, but which it believes still have longevity.

Next has shown a keen interest in buying brands at knockdown prices or investing in retailers that have lost their way. It hooks them up to its Total Platform system, running their logistics, e-commerce and returns services, thereby hoping to make them more efficient entities.

Adding a shoe retailer to its portfolio makes a lot of sense. So far, it has bought clothing, lingerie and furniture brands – all complementary to Next’s core business. Footwear is the missing piece of the puzzle.

A lot of Next’s success is down to having a well-oiled machine, with a close eye on costs, logistics and inventory.

In recent years it has offered third party products as well as its own, giving shoppers more choice. Fundamentally, it wants someone to go on its website and buy a product – whether that’s a Next branded one, or a third-party item. It stands to make money whatever the customer buys.

For years, Sports Direct-owner Frasers was the go-to name in the retail sector when a business needed bailing out. Frasers would wait until a company went into administration and swoop like a vulture. Next has now become an arch-rival to Frasers when deals emerge.