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The costs of FTSE 100 shares are falling as buyers digest recent commerce tariff threats from the US. Once I final checked, the UK’s premier share index was final 0.5% decrease in start-of-week buying and selling.
The intensifying tug-of-war over Greenland took a brand new flip over the weekend. US President Trump threatened to slap tariffs of 10% on a number of European nations (together with the UK) that oppose his deliberate takeover of the territory. These will are available on 1 February, and rise to 25% in June, he mentioned.
Tariff uncertainty rocked world inventory markets in 2025. But it didn’t cease the FTSE 100 rising greater than 20% over the course of the 12 months. And 2026 may very well be one other blowout 12 months even when commerce tensions intensify.
Nevertheless, it would pay for buyers to think about defending themselves from any market volatility. On this regard, Fresnillo (LSE:FRES) and SSE (LSE:SSE) may very well be high shares to take a detailed have a look at.
Right here’s why.
Main the index
Gold shares are sometimes the best beneficiaries of geopolitical and macroeconomic upheaval. With the Greenland saga, we now have each.
And so Fresnillo shares are presently the FTSE index’s largest riser at this time (19 January). Up 4.3%, they’ve been pushed by each gold and silver costs touching new peaks.
Shopping for gold shares doesn’t assure a constructive return when steel costs improve. Operational points on the exploration, mine growth and manufacturing phases — which aren’t unusual — can see these corporations sink in worth.
However with seven working mines and plenty of early-stage property Fresnillo’s huge scale considerably reduces this menace. If one challenge encounters issues the affect on share value and dividends could be negligible.
Moreover, the comnpany’s scale permits it to higher capitalise on the valuable metals surge than most different producers. It’s the world’s largest silver producer, and Mexico’s main gold digger by quantity.
At £39.04 per share, Fresnillo’s share value trades on a ahead price-to-earnings progress (PEG) ratio of 0.5. At beneath 1, this means the miner nonetheless presents large worth at this time.
One other FTSE 100 riser
Electrical energy producers like SSE are different basic protected havens in unsure occasions. Vitality demand stays broadly unchanged throughout the financial cycle, together with when tariff tensions explode.
Reflecting these defensive qualities, SSE’s share value touched recent report peaks this morning.
It’s true that investing in renewable power shares comes with added hazard for buyers in contrast with different power producers. Energy output (and by extension earnings) are very a lot on the mercy of Mom Nature.
Nevertheless, SSE’s giant asset portfolio — together with its fleet of gas-fired crops — can considerably scale back the affect of localised points. On steadiness I see the corporate’s deal with inexperienced power as a internet constructive for progress, given the UK’s ultra-supportive renewables coverage.
And SSE could obtain an added increase if commerce tariffs encourage the Financial institution of England to chop charges more durable. Decrease rates of interest are beneficial for the FTSE 100 agency’s asset values. In addition they assist scale back borrowing prices.
