London, Feb 20, 2026, 10:22 GMT — Regular session
Main takeaways
- The FTSE 100 trades roughly 0.5% higher late this morning, with mid-caps posting gains as well.
- January retail sales came in stronger than expected, fueling speculation about possible Bank of England rate cuts.
- Anglo American slipped to a $3.7 billion loss, hit once more by a fresh writedown at De Beers.
London’s blue-chip shares climbed Friday, lifted by upbeat UK economic data that kept hopes for rate cuts alive. Retailers and miners drew traders’ attention. The FTSE 100 advanced 0.5% to 10,682.01. FTSE 250? Also up 0.5%, landing at 23,700.78.
This comes just a day after the blue-chip index pulled back from its record levels—Rio Tinto shares slid following earnings, while Centrica tumbled on a profit warning and the halt of its buyback.
Friday’s batch of survey numbers nudged the mood higher. The S&P Global UK Composite PMI, which gauges company activity, ticked up to 53.9 in February from January’s 53.7—marking the strongest reading since April 2024. A score above 50 means expansion. “The early PMI data for February bring further signs of an encouraging start to the year for the UK economy,” S&P Global chief business economist Chris Williamson said. Reuters
Retail sales pulled their weight earlier, with January volumes climbing 1.8% from December—well past the 0.2% pace economists in a Reuters poll had penciled in. Year-on-year, sales jumped 4.5%, the best since February 2022, according to official figures. “The huge 2% m/m increase in retail sales volumes excluding fuel in January suggests that consumers are opening their wallets again as budget uncertainty recedes,” said Thomas Pugh, chief economist at RSM UK. Reuters
Burberry jumped to the top of the FTSE 100 in the opening minutes, while BP and Shell slipped with crude prices pulling back. Shore Capital’s David Hughes called the retail figures “an encouraging start to 2026,” but warned of potential “big surprises” lurking in the government’s Spring Statement. London South East
Anglo American shares rose after the miner posted results showing a $2.3 billion pre-tax writedown at De Beers, cutting the diamond division’s book value to $2.3 billion and leaving Anglo with a $3.7 billion loss. CEO Duncan Wanblad said, “There is at the moment a plentiful supply of rough diamonds in the market,” and noted that the De Beers sale process is well underway. Reuters
Rio Tinto stayed in focus, with the miner posting a drop in 2025 profit—even as revenue rose and the full-year dividend held steady. The drag: operating and finance costs climbed.
The market’s grip looks shaky. Oil surged Thursday as traders braced for possible U.S. strikes on Iran. The dollar also edged higher. That combination can quickly reignite inflation jitters and pressure commodity-sensitive stocks if investors pull back.
UK assets now head into a fiscal test. After January delivered a record budget surplus, investors have zeroed in on Chancellor Rachel Reeves’ Spring Statement, set for March 3. They’re scanning for any tweak to the government’s tax-and-spend approach—anything that might sway growth forecasts or shift the outlook for interest rates.
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