London, Feb 17, 2026, 08:10 GMT — Regular session trading underway.
- Barclays kicked off the session up roughly 0.2%, following fresh details on its latest round of share buybacks.
- UK banks are attempting a comeback after last week’s sharp slide, which was fueled by AI-related risk concerns.
- UK inflation numbers hit Feb. 18. Next up, the Bank of England’s rate decision in March is on traders’ radar.
Barclays kicked off Tuesday trading at 462.05 pence, up roughly 0.2% from Monday’s finish, after the bank disclosed it had repurchased 3.23 million shares for cancellation under its ongoing buyback. According to the filing, the shares changed hands at a volume-weighted average of 464.3338 pence. (London Stock Exchange)
Why it matters now: UK banks have swung around lately, with buybacks offering a brief cushion for investors looking for new economic cues. Monday saw Barclays up 1.5% and NatWest climbing 4.7%. The sector managed a rebound after just logging its steepest weekly loss since late March 2025, a drop triggered by artificial intelligence concerns rattling the market. (Reuters)
Across Europe, sentiment flipped: bank and insurance shares took the lead as the “AI scare trade” lost steam. “There is a growing sense that fears about AI … are overdone,” said Kathleen Brooks, research director at XTB. (Reuters)
Most of the heavy lifting right now is being done by rate expectations. According to a Reuters poll out Monday, the majority of economists predict the Bank of England will deliver a 25 basis point rate cut, bringing it down to 3.50% on March 19—this after February’s narrow 5-4 split left rates at 3.75%. “We stick to our call for the next Bank Rate cut to come in March,” Sanjay Raja, Deutsche Bank’s chief UK economist, told Reuters. James Rossiter at TD Securities put it this way: inflation probably “around the 2.5% mark” by the end of the year. (Reuters)
Wednesday at 0700 GMT brings January’s UK consumer inflation numbers. Depending on which way the data goes, rate-cut bets could shift—taking bank stocks with them. (GOV.UK)
January retail sales land at 0700 GMT on Feb. 20, just two days on. The print offers a glimpse into household demand and credit trends. (Office for National Statistics)
Barclays rolled out fresh targets last week after a 12% jump in 2025 profit and an upgrade to its return ambitions. CEO C.S. Venkatakrishnan pledged the bank would hand back over 15 billion pounds to shareholders from 2026 to 2028. Citi analysts, though, called the new goals “somewhat muted” and pointed to stiff competition in the U.S. consumer segment. (Reuters)
The road isn’t straight. If inflation comes in hotter, rate cuts might get delayed, which could knock rate-sensitive banks. And if another risk-off selloff arrives, that sector could tumble again—especially after its sharp rally earlier this month.
Barclays traders are now eyeing the UK inflation figures set for release at 0700 GMT on Wednesday. The Bank of England’s next call on the Bank Rate lands March 19. (bankofengland.co.uk)
