{"id":131259,"title":"Global Stock Market Rally Loses Momentum as European Shares Fall","publisher":"Share Talk","author":"sharetalk","published":"2026-01-08T11:00:27+00:00","modified":"2026-01-08T11:02:21+00:00","canonical_url":"https://www.share-talk.com/global-stock-market-rally-loses-momentum-as-european-shares-fall/","markdown_url":"https://www.share-talk.com/global-stock-market-rally-loses-momentum-as-european-shares-fall.md","json_url":"https://www.share-talk.com/global-stock-market-rally-loses-momentum-as-european-shares-fall.json","category":"B2B","categories":["B2B","Blogs","Technology","Technology, Media & Telecoms"],"tags":["European markets","FTSE 100","global markets","London Stock Exchange","Market update","Stock market volatility","UK stock market"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/01/london-8th-jan.webp?fit=1200%2C800&ssl=1","format":"news","language":"en-GB","content":"The **new year rally in global stock markets** appears to have lost momentum, with investors turning more cautious amid fresh corporate and macroeconomic concerns.\n\n**European markets traded lower** on Wednesday morning, extending losses seen earlier across **Asia-Pacific stock markets**, where several major indices closed in negative territory.\n\n### FTSE 100 Dips Below 10,000 Before Recovering\n\nIn London, the **FTSE 100** briefly slipped back below the **10,000-point** threshold in early trading before regaining some ground. The benchmark index later recovered to around **10,021 points**, down **26 points, or 0.26%**, on the day.\n\nThe pullback highlights growing uncertainty among investors after a strong start to the year for global equities.\n\n### AB Foods and Tesco Drag on UK Stocks\n\n**Associated British Foods** was the **biggest faller on the FTSE 100**, with shares plunging **11.5%** following a profit warning that rattled the market.\n\nSupermarket giant **Tesco** was also among the laggards, sliding **5.6%**, adding further downward pressure to the index.\n\nThe weakness in heavyweight consumer stocks offset gains elsewhere, leaving the FTSE 100 struggling to hold early support as trading continued.\n\n### Defence Sector Outperforms UK Stock Market\n\nThe rally extended across the wider defence sector, lifting stocks on both of the UK’s main equity indices. On the **FTSE 250**, **Chemring** led gains, rising as much as **4.2%**. The company supplies countermeasures used on **Typhoon** and **F-35** fighter jets, leaving it well positioned to benefit from increased defence procurement."}