London, Jan 24, 2026, 09:21 GMT — Market closed
- Legal & General shares ended Friday nearly flat, closing at 258.2p
- UK data shook sterling and trimmed expectations for immediate rate cuts
- Upcoming events: Bank of England meeting on Feb 5 and L&G’s full-year earnings on March 11
Legal & General (LGEN.L) shares finished Friday nearly unchanged, closing at 258.2 pence, up just 0.04% for the day. It capped a volatile week for UK rate-sensitive stocks. According to Hargreaves Lansdown data, the stock’s indicated dividend yield stood at 8.27% based on the latest close. 1
Late in the week, stronger UK data sparked a shift, boosting the pound and forcing investors to reconsider the pace of Bank of England easing. December retail sales rose 0.4%, defying expectations for a 0.1% drop. Meanwhile, the flash composite PMI — a private-sector activity gauge — climbed to 53.9, hitting a 21-month high. “Retail sales are a very volatile series,” said Jonas Goltermann, deputy chief markets economist at Capital Economics. Pantheon Macroeconomics’ Elliott Jordan-Doak added that the “Flash PMI… gives a further signal that GDP growth is likely to pick up in Q1.” 2
For Legal & General, this hits close to home. The insurer and asset manager is closely tied to the UK rates narrative. Changes in gilt yields — the interest rates on UK government bonds — and shifts in Bank Rate expectations directly influence how investors value life insurers’ spreads, capital buffers, and the long-term cashflows that support their annuity-style operations.
UK equities shrugged off the data, refusing a clear risk-on boost. The FTSE 100 slipped 0.07% on Friday, ending a three-week winning streak. Markets remained wary after U.S. President Donald Trump’s tariff threats against Greenland stirred geopolitical tensions. Gold’s advance supported precious metal miners, with Laura Cooper, senior macro strategist at Nuveen, noting, “Gold… remains the preferred portfolio hedge amid ongoing geopolitical risk.” 3
Bank of England policymaker Megan Greene struck a cautious note for rate-watchers. She said she remains concerned about businesses’ wage plans and will be closely monitoring inflation expectations. “Even more concerning… are the forward indicators for wage growth,” she added. Greene also cautioned that the BoE should not automatically follow the Federal Reserve if the U.S. central bank decides on aggressive rate cuts this year. 4
For L&G investors, this means juggling two opposing forces that seldom align. While rising yields boost new-money returns and pricing in some life sectors, declining bond prices and market swings continue to rattle confidence—especially as the macro narrative twists with every new data release.
Friday’s growth data had a sharp edge. The PMI revealed job cuts in services alongside rising price pressures. Chris Williamson, S&P Global’s chief business economist, flagged “high staffing costs” as pushing up selling prices — a factor likely to keep the BoE wary, even if growth remains steady. 5
Legal & General is set to release its preliminary full-year results on March 11 at 0700 GMT. This will be the first real chance for management to provide clarity on earnings, cash flow, and what the numbers might signal for asset-management inflows, following a shaky start to the year. 6
The Bank of England’s next decision comes Thursday, Feb. 5. The Bank Rate stands at 3.75%, and the central bank will release both its minutes and the Monetary Policy Report. 7
As London reopens on Monday, traders will be closely watching to see if sterling’s recent surge and the shift in rate expectations after the data stick, or if global bond trends and geopolitical tensions pull UK financials back into a defensive stance for the week.
