Finance
London’s FTSE 100 dips as Shell disappoints on earnings; BoE rate call awaited
Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Quick Summary
FTSE 100 dips as Shell's earnings miss expectations. Investors await BoE's rate decision amid economic and political uncertainties.
FTSE 100 Declines as Shell's Earnings Fall Short; BoE Rate Decision Looms
Market Overview and Key Influences
Feb 05 (Reuters) - The UK's FTSE 100 edged lower on Thursday, weighed down by Shell shares after the oil major posted weaker-than-expected quarterly profits, while investors awaited the Bank of England’s policy decision later in the day.
Impact of Shell's Earnings
The blue-chip index was down 0.4% at 1005 GMT, after closing at a record high yesterday. Meanwhile, the domestically focused mid-cap FTSE 250 was down 0.7%.
Bank of England's Rate Decision
Shell fell 1% after the oil major's fourth-quarter net profit of $3.3 billion missed expectations, dropping 11% from a year earlier amid lower oil prices.
Sector Performance
London-listed miners also pressured the index after gold and silver prices fell sharply in a broader market selloff against a stronger dollar. [GOL/]
Political Factors Affecting the Market
The index of precious metal miners fell 2.5% and industrial metal miners fell 1.4%.
Meanwhile, the BoE is expected to hold interest rates at 3.75% later in the day and signal caution on future cuts.
Despite slowing growth, Britain still has the highest borrowing costs in the G7, and investors will watch closely for changes to the BoE’s guidance after December’s narrow 5-4 vote to cut.
Technology stocks rebounded from a global rout seen earlier in the week. Analytics firm Relx was up 5%, while London Stock Exchange Group rose 7.2%.
Political uncertainty also weighed on the sentiment, lifting British borrowing costs on Thursday.
There were mounting concerns over whether British Prime Minister Keir Starmer could survive the fallout from his decision to appoint Peter Mandelson as U.S. ambassador despite knowing about his ties to Jeffrey Epstein.
Among individual stocks, Playtech rose 3.4% to the top of the mid-cap index after the gambling technology firm upgraded its outlook and said it was entering 2026 with strong momentum.
Ithaca Energy rose 4.5% after the oil and gas producer posted strong annual production and profit growth.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed)
Key Takeaways
- •FTSE 100 falls 0.4% due to Shell's earnings miss.
- •Shell's profits drop 11% amid lower oil prices.
- •BoE expected to maintain interest rates at 3.75%.
- •Political uncertainty impacts UK market sentiment.
- •Tech stocks rebound, boosting market confidence.
Frequently Asked Questions about London’s FTSE 100 dips as Shell disappoints on earnings; BoE rate call awaited
1What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
2What are quarterly profits?
Quarterly profits refer to the earnings a company generates over a three-month period, which is often reported to assess financial performance.
3What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for monetary policy, issuing currency, and maintaining financial stability.
4What are corporate profits?
Corporate profits are the earnings that companies make after deducting all expenses, taxes, and costs from their total revenue.
5What is market sentiment?
Market sentiment refers to the overall attitude of investors towards a particular market or asset, often influenced by news, events, and economic indicators.
