0203 697 0560
support@capitalfinancialmarkets.co.uk

January 2026 Outlook

by | Jan 20, 2026 | News | 0 comments

The start of 2026 has brought continued momentum in financial markets, with UK equities remaining among the stronger performers in recent months. Despite a softer domestic economic backdrop, international investors have increasingly recognised the relative value of many UK listed companies, particularly given the global nature of FTSE 100 revenues. 

Across interest rate expectations, the broader trend has shifted towards gradual reductions. While rates are unlikely to return to the unusually low levels seen during the pandemic, a move toward the 3% range is widely discussed, contributing to improving sentiment and easing pressures on households and businesses. Falling global rates have supported this more positive tone. 

Market participants continue to monitor a range of risks as the year begins. High valuations in parts of the US market, particularly among major technology names, remain a talking point, as do broader political uncertainties around the world. Discussion also continues around longer-term geopolitical themes, including tensions in East Asia and the implications these could have on global supply chains. More positively, the recent fall in energy prices has helped inflation to ease, providing some stability as the new year gets underway. 

In both the UK and the US, expectations for 2026 reflect a blend of cautious optimism and recognition of ongoing challenges. The UK enters the year with a steadier inflation outlook and potential rate reductions ahead, while US forecasts remain influenced by the continued impact of technological development and adjustments in monetary policy. Each market faces its own opportunities and uncertainties as global conditions evolve. 

Elsewhere, themes such as energy supply, infrastructure resilience and public sector finances remain at the forefront of wider economic discussions. Issues including long-term electricity capacity, government borrowing pressures and the impact of global commodity markets continue to shape sentiment and planning across the year. 

 

This article is from our founder Paul Coffin and is a snippet from our Quarterly Newsletter which also has contributions from some of our other Investment Managers. We would be delighted to find out how we can support you with your investment management needs.

Contact us today: support@capitalfinancialmarkets.co.uk 

 

Emma Tuckett

Investment Manager

Well-respected Investment Manager, Emma Tuckett, has joined CFM following a successful career at Killik & Co.

After nearly a decade working in Trading and Investments, Emma has worked with clients from a wide range of backgrounds and has extensive experience in Advisory and Discretionary Investment Management, with a particular focus on ESG investing and helping clients align their investments with their long-term objectives and values.

emma.tuckett@capitalfinancialmarkets.co.uk

Joanne Hill

Compliance Manager

Joanne has joined Capital Financial Markets as Compliance Manager having worked in the Independent Financial Advice sector for over 30 years. 

Joanne holds a degree in Business and Finance, the CII Diploma in Financial Planning and has a wealth of experience and knowledge within Financial Services.  Joanne’s role is to protect both Capital Financial Markets and our Clients.

joanne.hill@capitalfinancialmarkets.co.uk

Saffron Heasley

Client Administrator

We are delighted that Saffron joined the CFM team as our business apprentice capably fulfilling the Client Administrator role. Saffron brings enthusiasm, reliability and a strong willingness to learn. In this role, Saffron supports the smooth day-to-day running of the business, providing essential administrative support across the team helping to ensure processes run efficiently and compliantly.

With a keen eye for detail and a proactive approach, Saffron is developing a solid foundation while working closely with colleagues across the organisation. Saffron is a valued member of the team and plays an important role in supporting CFM’s operations as we continue to grow.

saffron.heasley@capitalfinancialmarkets.co.uk

Paula Mitchell

Head of Operations & People

Having worked with us as a consultant for over eight years Paula brings that familiarity to the organisation and has joined the CFM team as Head of Operations & People.

A seasoned finance and HR professional with a masters in HR Management, Paula combines analytical strength with a people-centred approach to drive operational excellence. Paula will be leading the team and supporting Paul with the operations and people strategy ensuring sustainable growth and the smooth running of the business.

paula.mitchell@capitalfinancialmarkets.co.uk