London, January 27, 2026, 10:54 GMT — Regular session
Bank shares lifted London’s FTSE 100 on Tuesday, pushing the index of the top 100 companies on the London Stock Exchange up 0.5% to around 10,197. The FTSE 250, tracking mid-cap stocks, stayed flat. 1
Inflation and the trajectory of interest rates remain front and center. UK shop prices jumped 1.5% year-on-year in January, marking the quickest rise in almost two years, according to the British Retail Consortium. It’s a clear sign that price pressures persist. “Any suggestion that inflation has peaked is simply not borne out,” BRC chief executive Helen Dickinson said. 2
That’s a big deal for rate-sensitive sectors like lenders and domestic retailers. A Reuters poll shows the Bank of England is widely expected to keep the Bank Rate steady at 3.75% on Feb. 5. Most respondents predict a quarter-point cut (25 basis points, or 0.25 percentage point) in March. “The MPC has been able to move cautiously and keep its options open,” said Sanjay Raja, Deutsche Bank’s chief UK economist. 3
Financials kicked things off with a solid gain. HSBC, Prudential, NatWest, St James’s Place, and Barclays all climbed between 1.1% and 1.8%. Sage edged up roughly 1% after flagging a “strong” first quarter. Cranswick also put on about 1.2%, saying full-year profit should hit the top end of its guidance. 4
Dr Martens weighed on the mid-cap index, slipping 8.7% in early trade after cautioning that demand remains uncertain. The bootmaker expects revenue for fiscal 2026 to be broadly flat as it cuts back on discounting. “The outlook for boots demand remains difficult to predict near term,” RBC Capital Markets analysts noted. 5
Cranswick, which supplies Tesco, Sainsbury’s, and Marks & Spencer, highlighted stronger poultry prices alongside solid festive sales as it signalled profits at the high end of its forecast range. Analysts anticipate adjusted pre-tax profits between £211.3 million and £216.0 million, according to a company-sourced consensus. 6
Gambling group Evoke, which owns William Hill in the UK, has held back its 2026 forecast while conducting a strategic review following tax changes. The company reported a 3% drop in fourth-quarter revenue and maintained its 2025 adjusted core profit guidance between 355 million and 360 million pounds. CEO Per Widerstrom cautioned that higher levies might drive growth in the “illegal black market.” 7
Asset manager M&G flagged a one-off hit of £230 million tied to the government’s planned leasehold reform, highlighting £722 million in exposure to ground rent assets. The changes, set to kick in by 2028, are expected to trim adjusted operating profit by around £15 million. 8
Tuesday followed a quiet Monday on the market. The FTSE 100 closed unchanged, with miners and healthcare stocks pushing higher enough to counter falls in industrials. Spire Healthcare surged on fresh buyout rumors, but Wizz Air dipped after applying for U.S. flight clearance. 9
Beyond Britain, risk appetite held firm. Global shares lingered near all-time highs, with investors preparing for a packed week of U.S. megacap earnings and a Federal Reserve meeting. Tariff news remained subdued. “The market can focus back on fundamentals,” said Mohit Kumar, chief Europe economist at Jefferies. 10
The downside for UK stocks is clear: inflation expectations might pick up again, limiting policymakers’ options. A Citi/YouGov survey found short-term public inflation expectations climbed to 3.8% in January from 3.6% in December—a red flag for the Bank of England. 11
Attention now shifts to the Bank of England’s decision on Feb. 5, along with the minutes and the Monetary Policy Report. The February release is set for 12:00 GMT. 12
