LONDON, Jan 31, 2026, 08:01 GMT — Market closed
- On Friday, Barclays shares climbed 1.38%, closing at 486.20 pence.
- UK bank shares pushed higher at month’s end, buoyed by a softer pound.
- Attention turns to Bank of England rate decision on Feb. 5, followed by Barclays earnings on Feb. 10.
Barclays (BARC.L) shares closed Friday 1.38% higher, at 486.20 pence, before London markets closed for the weekend. (Hargreaves Lansdown)
The rise was driven by banking shares, sending the FTSE 100 into its longest monthly winning streak in over 12 years. Sterling slipped roughly 0.6% versus the dollar. “The weaker pound is obviously beneficial for the multinationals,” noted Fiona Cincotta of City Index. (Reuters)
The rebound wasn’t limited to the UK. Europe’s broad share index closed January up for a seventh month running, driven by bank stocks rallying on Friday as investors weighed earnings reports and central bank news. (Reuters)
In UK banking, investors followed Lloyds Banking Group’s lead from the previous day. CEO Charlie Nunn highlighted “our continued business momentum and strategic delivery enable us to upgrade guidance,” as the bank raised a key profitability target and unveiled a share buyback. (Reuters)
Barclays provided a fresh capital-return update, revealing it bought back 3,517,483 shares for cancellation on Jan. 29. The purchase came at a volume-weighted average price of 483.3002 pence, as part of the buyback scheme announced last October. (Investegate)
The next catalyst is approaching. UBS, in a preview note cited by Investing.com, said investors now want a growth story that goes beyond “hedge tailwinds” — those gains from interest-rate hedges that help stabilize lending income as rates shift. The note pointed to Barclays as one of the heavily “overweight” names, with earnings due Feb. 10. NatWest Group and HSBC follow later in February. (Investing)
Rates are the first piece of the puzzle to fall into place. The Bank of England will reveal its next policy move on Feb. 5, with the Bank Rate currently at 3.75%. For lenders, a drop in rates can tighten net interest income — that’s the gap between what banks earn on loans and what they pay out on deposits. (Bank of England)
Barclays’ stock closed the week just shy of its recent peak, with trading volume near its usual range. On Friday, the share price settled roughly 1.4% below its 52-week high, according to MarketWatch data. (MarketWatch)
There are risks, though. Should the Bank of England adopt a more dovish stance than investors anticipate, or if earnings reveal weaker pricing power, rising loan losses, or sluggish trading revenue, bank shares could plunge quickly. Barclays, in particular, relies heavily on its markets business, which can be volatile depending on client activity and market swings.
London trading kicks off Monday with investors focused on sterling, gilt yields, and the upcoming UK bank reports. Key dates are locked in: the Bank of England announces its decision on Feb. 5, followed by Barclays releasing its full-year results on Feb. 10.
