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Values of FTSE 100 stocks fell as investors digested new threats of trade tariffs from the US. When I last checked, the UK Prime Minister’s share index was down 0.5% in early trading for the week.
The bitter conflict in Greenland took a new turn over the weekend. US President Trump has threatened to impose a 10% tax on several European countries (including the UK) that oppose his takeover of the area. These will kick in on February 1, and rise to 25% in June, he said.
Tariff uncertainty rocked global stock markets in 2025. However it did not stop the FTSE 100 from rising more than 20% during the year. And 2026 could be another breakout year even if trade tensions escalate.
However, it may pay investors to consider protecting themselves from any market volatility. In this regard, Fresnillo (LSE:FRES) and SSE (LSE:SSE) could be a top stock to watch.
Here is the reason.
Leading the way
Gold stocks are often the biggest beneficiaries of major global economic crises. In the Greenland proverb, we have both.
And so Fresnillo shares are currently the main index of the FTSE today (January 19). It rose 4.3%, driven by both gold and silver prices touching new highs.
Buying gold stocks does not guarantee good returns when the metal’s prices rise. Operational problems in the exploration, mine development and production stages – which are rare – could see these companies sink in value.
But with seven active mines and many original assets, Fresnillo’s large scale greatly reduces this threat. If one project encounters problems the impact on the share price and shares can be negligible.
In addition, the company’s scale enables it to monetize the use of precious metals better than many other producers. It is the world’s largest producer of silver, and Mexico is the leading gold miner by volume.
At £39.04 a share, Fresnillo’s share price trades at a forward price growth (PEG) ratio of 0.5. Less than 1, this suggests that the miner is still offering great value today.
Another FTSE 100 riser
Power producers like SSE are some classic safe havens in uncertain times. Energy demand has remained broadly stable throughout the economic cycle, including when fiscal tensions erupt.
Reflecting these defensive qualities, the SSE price hit new record highs this morning.
It is true that investing in renewable energy stocks comes with more risk for investors compared to other energy producers. Power output (and more profit) is at the mercy of Mother Nature.
However, SSE’s large asset portfolio – and its array of gas-fired plants – can significantly reduce the impact of localized problems. On balance I see the company’s focus on green energy as a positive for growth, given the UK’s very supportive renewables policy.
And the SSE could get a further boost if trading rates encourage the Bank of England to cut rates further. Low interest rates favor the stock prices of FTSE 100 companies. They also help reduce borrowing costs.
