---
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"
date: 2026-01-08
canonical: "https://www.share-talk.com/global-stock-market-rally-loses-momentum-as-european-shares-fall/"
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"]
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"
---

# Global Stock Market Rally Loses Momentum as European Shares Fall

**Published:** January 8, 2026
**Author:** sharetalk
**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)

---

The **new year rally in global stock markets** appears to have lost momentum, with investors turning more cautious amid fresh corporate and macroeconomic concerns.

**European markets traded lower** on Wednesday morning, extending losses seen earlier across **Asia-Pacific stock markets**, where several major indices closed in negative territory.

### FTSE 100 Dips Below 10,000 Before Recovering

In 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.

The pullback highlights growing uncertainty among investors after a strong start to the year for global equities.

### AB Foods and Tesco Drag on UK Stocks

**Associated British Foods** was the **biggest faller on the FTSE 100**, with shares plunging **11.5%** following a profit warning that rattled the market.

Supermarket giant **Tesco** was also among the laggards, sliding **5.6%**, adding further downward pressure to the index.

The weakness in heavyweight consumer stocks offset gains elsewhere, leaving the FTSE 100 struggling to hold early support as trading continued.

### Defence Sector Outperforms UK Stock Market

The 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.

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