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Stock Markets January 26, 2026

FTSE 100 holds steady after turbulent week as pound climbs above $1.36; Ryanair profit hit by Italian fine

Blue-chip index opens flat amid mixed European moves; Ryanair posts sharp Q3 profit drop while S4 Capital, Costain and Spire make headlines

By Ajmal Hussain COSG
FTSE 100 holds steady after turbulent week as pound climbs above $1.36; Ryanair profit hit by Italian fine
COSG

London’s FTSE 100 opened largely unchanged after a volatile spell that included a tariff threat tied to Greenland. Sterling strengthened above $1.36, while European peers showed modest divergence. Ryanair reported an 80% plunge in third-quarter profit following an €85 million regulatory charge in Italy. S4 Capital beat revised guidance, Costain delivered expected operating profit with improved cash, and Spire’s shares leapt on preliminary private equity talks.

Key Points

  • FTSE 100 opened flat at 0905 GMT as markets reacted to a volatile week that included a Greenland-related tariff threat from U.S. President Donald Trump; GBP/USD rose 0.2% to 1.3670.
  • Ryanair reported a third-quarter profit of €30 million after exceptional items for the period ended December 31, an 80% decline from €149 million a year earlier due to an €85 million charge from Italy’s competition authority - impacting the airline sector.
  • S4 Capital beat its revised November guidance and market consensus with net revenue above £664 million and operational EBITDA above £75 million, delivering roughly a 12% operational EBITDA margin despite an 8.5% like-for-like net revenue drop; Costain met expectations while improving net cash to £190 million and surpassing a 4.5% adjusted operating margin target, and Spire surged over 16% after confirming preliminary talks with private equity firms.

British equities began trading flat on Monday after a week marked by heightened volatility that included a tariff threat related to Greenland from U.S. President Donald Trump. At 0905 GMT the FTSE 100 was unchanged, while the British pound moved higher against the dollar.

Currency and regional indices showed subtle shifts early in the session: GBP/USD rose 0.2% to 1.3670, Germany’s DAX edged up 0.1% and France’s CAC 40 slipped 0.1%.

Corporate movers in London

Ryanair Holdings PLC reported a steep reduction in third-quarter profit as a sizeable regulatory penalty weighed on earnings. For the quarter ended December 31 the low-cost carrier recorded a profit of €30 million after exceptional items, marking an 80% fall from €149 million a year earlier. Ryanair attributed the dramatic decline to an €85 million charge linked to a fine from Italy’s competition authority.

S4 Capital PLC disclosed that its full-year 2025 trading results outperformed both the company’s revised guidance published in November and analysts' consensus. The digital advertising group exceeded forecasts of £664 million in net revenue and £75 million in operational EBITDA, delivering an operational EBITDA margin of about 12% despite an 8.5% decline in like-for-like net revenue.

Infrastructure firm Costain Group said its adjusted operating profit for fiscal year 2025 was in line with market expectations. The company reported net cash of £190 million, above the consensus estimate of £171 million, and said its adjusted operating margin surpassed its 4.5% run-rate target. Costain added that trading during FY25 was positive, and that it expects second-half revenue to mirror first-half revenue of £525 million as a number of projects reached completion.

Shares in Spire Healthcare Group plc jumped more than 16% after the private hospital operator confirmed it is in preliminary discussions with private equity firms. In a strategic review announced in September, the company named Bridgepoint Advisers Limited and Triton Investment Advisers LLP among parties involved in the talks.

Market context and takeaways

The opening session reflected a market adjusting to recent headline-driven swings while parsing company-specific updates. Currency moves - notably the pound’s rise above the $1.36 mark - accompanied a mixed picture across European indices. Corporate results and strategic developments in the UK equity market drove much of the early action, with the airline, advertising, infrastructure and healthcare sectors in focus.

Investors monitoring the calendar will note the combination of headline risk and company disclosures that contributed to the subdued overall move in the FTSE 100 despite sizable swings at the individual stock level.

Risks

  • Headline geopolitical or tariff-related developments - exemplified by the Greenland-related tariff threat - can increase volatility across equity markets and affect investor sentiment, particularly in currency and internationally exposed sectors.
  • Regulatory penalties and fines can materially depress company earnings, as shown by Ryanair’s €85 million charge from Italy’s competition authority that drove an 80% drop in quarterly profit - a risk concentrated in the airline and travel sectors.
  • Ongoing strategic talks and preliminary discussions, such as those involving Spire and private equity firms, carry uncertainty about outcomes and potential changes in ownership or strategy that can lead to sharp share price moves in the healthcare sector.

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