London, February 16, 2026, 17:03 GMT — After-hours
The FTSE 100 in London inched up 0.3% to 10,473.69 after a subdued Monday, lifted mainly by banks and defence stocks as U.S. markets were closed for the holiday. NatWest surged 4.8% to 607.80p. Melrose added 3.9%, Babcock climbed 3.5%, and BAE Systems was up 3.0%. The FTSE 250 mid-caps didn’t fare as well, down 0.2%. Pinewood Technologies tumbled 33%, weighing on the index.
The close takes on extra weight, with several key UK data releases lined up in the next few sessions—numbers that could shift expectations for what the Bank of England does next. Markets have a 25-basis-point cut on the table for as early as next month, a quarter-point move that hinges on evidence tighter policy is starting to bite. Banks found their footing after last week’s AI-fueled nerves, but miners fell behind as both base and precious metals softened.
A Reuters survey shows economists betting on a quarter-point rate cut at the Bank of England’s March 19 meeting, putting Bank Rate at 3.50%. “We stick to our call for the next Bank Rate cut to come in March,” Deutsche Bank’s Sanjay Raja said. TD Securities’ James Rossiter expects inflation to “sit around the 2.5% mark” by year-end. Reuters
NatWest gave the market a lift after announcing a share buyback plan worth up to £750 million, with any shares bought to be cancelled, cutting the overall share count. The bank said UBS will handle the trades independently, and the programme wraps up by Jan. 15, 2027.
Defence names found some support from the political backdrop after Prime Minister Keir Starmer argued the UK must “go faster” on upping defence outlays. He’s weighing a move to speed up the 3% of GDP spending goal to 2029, according to a BBC report. The country’s budget watchdog pegs the annual price tag for hitting 3% at an extra £17.3 billion in 2029-30. Reuters
Shares in Pinewood slumped on the FTSE 250 after Apax Partners exited the takeover race, prompting the company to reassure investors. Pinewood pointed out that Apax’s “no intention to bid” announcement set off Rule 2.8 restrictions under the UK Takeover Code. Even so, the firm doubled down on its belief in its long-term outlook. Full-year results are still scheduled for April 22. Investegate
SkinBioTherapeutics shares tumbled roughly 45% early this day, after the company revealed it must reverse around £770,000 of accrued royalty income and restate its 2025 accounts. The move comes in the wake of an internal probe that found misrepresentations tied to its former CEO. Looking ahead, SkinBioTherapeutics warned that fiscal 2026 earnings will fall “significantly below” what the market had been expecting. Reuters
The coming week might not be any smoother. “We still won’t have enough evidence to identify the structural winners and losers with confidence,” wrote Jim Reid at Deutsche Bank. He flagged the ongoing back-and-forth over which companies stand to gain—or lose ground—as AI tools proliferate, a debate likely to keep sentiment on edge. Reuters
Blue chips edged higher while midcaps slipped, underscoring just how sharply UK shares are swinging from broad macro trades to sudden, company-level jolts. Investors continue to hammer names hit by deal fatigue or fresh governance stumbles.
Investors won’t have to wait long for the next data points. UK labour market numbers hit at 07:00 GMT Tuesday (Feb. 17). January inflation lands the same time Wednesday (Feb. 18), with retail sales wrapping up the week on Friday (Feb. 20), also at 07:00 GMT. The Bank of England’s MPC meets next on March 19.
