London, May 25, 2026, 11:04 BST
London markets were closed Monday for the Spring Bank Holiday. With no trading, investors had to wait for the holiday-shortened week to react to Friday’s gains. The London Stock Exchange had May 25 marked as a non-trading day for the Spring Bank Holiday.
FTSE 100 ends skid as UK data cools rate hike fears
The FTSE 100 snapped a four-week losing run on Friday, getting a boost after weaker UK data pulled back worries about a near-term rate hike from the Bank of England. “The backdrop was much less conducive to a long-lasting bout of inflation than it was in 2022,” Ruth Gregory, deputy chief UK economist at Capital Economics, said. Reuters
FTSE 100 ends the day at 10,466.26, adding 22.79 points, or 0.22%, according to London Stock Exchange data. The FTSE 250 gained 219.55 points, or 0.96%, finishing at 23,167.47.
UK inflation is still tangled. CPI cooled to 2.8% in April from 3.3% in March, according to the Office for National Statistics. Wage growth minus bonuses eased to 3.4% in Q1, Reuters said. Job vacancies dropped to 705,000, lowest since early 2021. The Bank of England’s Bank Rate holds at 3.75%. The next rate call comes June 18.
UK retail sales dropped 1.3% in April from March, as the ONS reported a pullback in fuel sales after earlier stockpiling by drivers. “Pressure on household finances was weighing heavily on consumer confidence,” said Samuel Edwards, head of client portfolio management at Ebury. Office for National Statistics Reuters
A business survey issued a fresh warning. The S&P Global Flash UK PMI dropped to 48.5 for May, down from 52.6 in April, signaling contraction as anything under 50 shows shrinking activity. Chris Williamson, chief business economist at S&P Global Market Intelligence, described the decline as a “perfect storm” caused by political uncertainty and Middle East fallout.
Monday’s bounce in Europe might not hold. The STOXX 600 moved up in early moves with Brent crude slipping on Iran-U.S. peace hopes. But Kyle Rodda, senior market analyst at Capital.com, said even with a deal, it “could be little more than an extended ceasefire,” meaning oil, inflation, and rate trades stay volatile and could snap back fast. Reuters
London energy stocks will be watched as the market opens. Shell and BP are dealing with oil price moves and new UK policy after finance minister Rachel Reeves said she will shut a tax loophole some multinational oil and gas firms use. “We are putting an end to that practice,” Reeves said. Reuters
Mid-cap shares traded higher on deal news. Bodycote said Apollo made a conditional all-cash bid for about 1.52 billion pounds, or 885 pence a share. Shares jumped almost 19%. Bodycote also said a formal offer may not be made.
UK data releases are thin this week, with just ONS figures on household costs and NEETs set for Thursday. Traders are focused on how falling oil, weaker activity and cooler inflation may help keep rate worries in check when London gets back in line with Monday’s global market shifts.
