London, Feb 5, 2026, 10:52 GMT — Regular session
- UK stocks edge lower with rate decision ahead
- Shell drops after profit miss, keeps buyback pace
- Investors watch BoE guidance for the next cut signal
UK stocks eased on Thursday, with the FTSE 100 down about 0.2% at 10,382 points by 1052 GMT, as traders trimmed positions ahead of central bank news and a busy earnings tape.
The Bank of England is expected to keep Bank Rate at 3.75%, with investors scanning for any change in the tone around future cuts after inflation proved sticky in late 2025. “Despite sluggish growth and a weakening labour market, the BoE will want further evidence that inflation is falling towards its 2% target,” said James Mashiter, a fixed-income portfolio manager at SEI. The MPC last cut by 25 basis points — a quarter of a percentage point — in December. Reuters
Broader European trade was cautious, with the STOXX 600 down 0.5% as investors digested mixed earnings and waited for the European Central Bank’s decision. Mining shares fell 1.8%, while regional tech stocks rose 1.7% after recent pressure on software names. “Anything less is going to be punished in the share price,” said Craig Cameron, a portfolio manager at Templeton Global Equity Group, in comments on how quickly markets are reacting to earnings misses. Reuters
The FTSE 100 set its latest record close on Wednesday, ending up 0.85% at 10,402.34, after healthcare outperformed. GSK jumped 6.9% to a 26-year high after quarterly results, while Beazley climbed 6.9% after agreeing to the terms of a sweetened 8 billion pound takeover proposal from Zurich Insurance. “Driven by a rotation out of high-multiple growth names – amid mixed earnings – into value-oriented stocks,” said Axel Rudolph, a senior financial analyst at IG, describing the pull away from some growth pockets this week. Reuters
Shell fell 1.9% after reporting fourth-quarter profit of $3.3 billion, missing a $3.5 billion company-provided analyst poll, though it maintained a $3.5 billion quarterly share buyback — a repurchase of shares — and raised its dividend 4%. Chief Financial Officer Sinead Gorman said the rolling 12-month payout range was “sacrosanct”. RBC said Shell’s reserve life slipped to 7.8 years, and flagged questions over how the group replaces reserves. Reuters
In individual names, Vodafone shares were down 4.7% after it launched a 500 million euro buyback and reported 6.5% revenue growth in the three months to end-December. Chief Executive Margherita Della Valle said, “We maintained good service revenue momentum in the third quarter.” Compass Group fell 2.9% after reporting 7.3% organic revenue growth in its first quarter, while CEO Dominic Blakemore said, “We have delivered a strong start to the year.” In the FTSE 250, Playtech rose 6.4% after saying it now expects 2025 adjusted EBITDA — a cash-earnings measure — of at least 195 million euros, above analyst consensus of 177 million euros. London South East
A surprise in the BoE vote split, or a tougher line on wage-driven inflation risks, could jolt rate-sensitive domestic stocks even if the headline rate stays put.
Next up is the Bank of England’s policy decision due at 12pm, with investors focused on whether officials keep pointing to a “gradual” easing path or start to lean more firmly toward a pause into the spring. bankofengland.co.uk
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