Finance
London stocks edge higher as financials bounce back
Published by Global Banking & Finance Review®
Posted on February 16, 2026
2 min readLast updated: February 16, 2026
Quick Summary
London stocks rose as financials rebounded, with NatWest and Barclays leading gains. Economic data may influence future Bank of England policies.
London stocks edge higher as financials bounce back
Market Overview and Financial Recovery
Feb 16 (Reuters) - London's FTSE indexes edged higher on Monday, as financial stocks gained heading into a week packed with economic data that could give further clues on the central bank's future monetary policy path.
Performance of Major Financial Institutions
The internationally-focused FTSE 100 edged up 0.41% to 10,488.79 points by 0925 GMT, while the domestically-focused FTSE 250 index climbed 0.36% to 23,513.26 points.
Impact of Economic Data on Markets
British banks such as NatWest and Barclays added 4.3% and 2.7%, respectively, leading the gains on the blue-chip index, tracking a broader recovery in European financial stocks after last week's selloff.
Sector Performance Analysis
UK lenders had logged their biggest weekly fall since late-March 2025 on Friday, as jitters about artificial intelligence models disrupting traditional business swept through global markets.
Meanwhile, UK January consumer inflation and retail sales data and February's initial estimates on manufacturing activity will be in the spotlight as the week progresses.
Inflation is still not anywhere close to the Bank of England's 2% target, although investors are pricing in a 25-basis-point interest rate cut next month on signs that tight monetary conditions are weighing on the labour market and the broader economy.
Among other movers, SkinBioTherapeutics tumbled 41.4% after the British dermatology company said it was investigating its former CEO and believes he misrepresented material financial information to the board and auditors.
Auto service provider Pinewood's stock tanked 28% and was at the bottom of the mid-cap index after private equity firm Apax Partners axed the $792 million deal that it announced in late January, citing challenging market conditions.
A broader decline in base and precious metals weighed on the materials sector that was among the top sectoral decliners.
(Reporting by Johann M Cherian in Bengaluru; Editing by Harikrishnan Nair)
Key Takeaways
- •London's FTSE indexes saw gains led by financial stocks.
- •NatWest and Barclays were top performers in the market.
- •UK banks previously faced a significant weekly fall.
- •Economic data may influence Bank of England's policy.
- •Other sectors like materials faced declines.
Frequently Asked Questions about London stocks edge higher as financials bounce back
1What is monetary policy?
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to influence economic activity.
2What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
3What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange.
4What are financial institutions?
Financial institutions are organizations that provide financial services, such as banks, insurance companies, and investment firms.
5What is consumer inflation?
Consumer inflation measures the change in price levels of a basket of consumer goods and services over time.
