London, February 6, 2026, 10:47 GMT — Regular session
UK shares barely moved on Friday, held back by drops in data and software stocks. The FTSE 100 edged up just 0.01% to 10,310.70 by 10:47 GMT, while the FTSE 250 slipped 0.06% to 23,088.74. (Hargreaves Lansdown)
That calm didn’t last long. Thursday’s razor-thin Bank of England vote sent sterling and UK government bonds reeling, reviving speculation about rate cuts. “The vote split is a lot more dovish than expected,” said Kirstine Kundby-Nielsen, an analyst at Danske Bank. (Reuters)
The Bank kept its key rate steady at 3.75% but hinted at possible cuts if inflation continues to fall, pushing traders to price in an earlier easing cycle. This move comes as investors worldwide rethink the winners and losers from rapid AI advances, a trend now influencing London’s large-cap stocks. (Reuters)
RELX dropped 4.2% to 2,155.00 pence, topping the FTSE 100 fallers. Sage Group slipped 2.8%, and Entain was down 2.9%. These declines deepened worries around firms vulnerable to AI-driven disruption in data, analytics, and software. (Hargreaves Lansdown)
Miners and banks provided some support. Glencore edged up 1.3% to 481.35 pence, with Fresnillo rising 1.5% to 3,611.00 pence. On the banking front, Barclays gained 1.3% to 472.32 pence, and NatWest ticked up 0.8% to 655.30 pence. (Hargreaves Lansdown)
Thursday’s close stayed above the tape. The FTSE 100 slipped 0.9% as a split vote at the Bank raised bets on more rate cuts, dragging banks down; HSBC, Lloyds, and NatWest shed between 2.3% and 6%. Shell tumbled 3.4% after missing fourth-quarter profit estimates, while Rio Tinto and Glencore slipped following the collapse of their merger talks. (Reuters)
Housing data offered a fresh take on rate sensitivity. Halifax reported a 0.7% jump in house prices for January, rebounding from a 0.5% drop in December and pushing the average past the £300,000 mark for the first time. “Affordability remains a challenge,” noted Amanda Bryden, Halifax’s head of mortgages. Ashley Webb, an economist at Capital Economics, warned that political instability could push gilt yields higher — the return on UK government bonds — potentially slowing any decline in mortgage rates. (Reuters)
Friday’s session kicked off on a down note, dragged by renewed jitters over AI spending and its disruptive impact. “It’s just another day… another pledge to invest massively in AI… and another negative market reaction,” said Swissquote analyst Ipek Ozkardeskaya. Among mid-caps, HgCapital Trust surged after an update, while Victrex slipped following a trading statement; CEO James Routh insisted the “full year guidance remains unchanged.” (Shareprices)
The biggest risks remain mostly under the radar: the global software sector has plunged into what some traders call a sentiment washout, erasing about $1 trillion from U.S. software and services since late January, Reuters reported. “At this stage, I’d say it’s a sell-everything mood,” said Dave Harrison Smith, chief investment officer at Bailard. (Reuters)
Investors are now focused on the rescheduled U.S. January jobs report set for February 11 at 8:30 a.m. ET, delayed by the partial government shutdown. Across the pond, the Bank of England’s next rate decision comes on March 19, a key date in the ongoing discussion over potential cuts. (Bureau of Labor Statistics)
