UK investors are facing a split narrative. On one hand, business conditions at the end of 2025 weakened, with hiring activity falling and employer confidence pulling back. On the other, the FTSE 100 has stayed largely resilient, even as political and economic uncertainty has grown globally.
New data shows a slowdown in UK job placements across both permanent and temporary roles in December. Firms reported less appetite to hire, with surveys highlighting rising costs and caution around forward demand. Normally, this kind of data would weigh on market sentiment. But so far, equities have not reacted strongly.
Sterling has strengthened against the dollar, despite weaker UK business trends. The driver behind this is political risk in the United States. A criminal investigation into the Chair of the Federal Reserve has raised concerns over central bank independence. That has pulled the dollar lower and pushed gold sharply higher, with prices now above $4,600 an ounce.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
