Finance
London's FTSE indexes subdued as investors assess AI concerns; defence stocks gain
Published by Global Banking & Finance Review®
Posted on February 13, 2026
2 min readLast updated: February 13, 2026
Quick Summary
FTSE indexes steady amid AI concerns; defence stocks rise. Tech, life insurers, and banks face losses, while NatWest reports profit increase.
FTSE Indexes Remain Steady Amid AI Concerns; Defence Stocks Rise
Market Overview and Sector Performance
Feb 13 (Reuters) - Britain's FTSE indexes were subdued on Friday, tracking a sombre mood globally in a week that was marked by AI-disruption worries, while defence stocks got a lift as investors priced in greater European cooperation that could boost the sector.
Impact of AI on Markets
The blue-chip FTSE 100 and the mid-cap FTSE 250 slipped 0.1% each at 1140 GMT. Still, the indexes were on track for small weekly gains.
Sector Performance Analysis
A wave of artificial intelligence tool releases since late January has triggered bouts of volatility in global markets, as investors tried to weigh the impact of newer models on traditional businesses.
Banking Sector Insights
In the UK, much of the declines were seen in the technology sector, life insurers and banks. The sectors are on track for weekly losses of over 4% each.
On Friday, however, tech stocks rebounded with a 3.8% gain, with RELX gaining 5.4%, while other stocks that took a hit in the selloff such as credit analytics firm Experian added 4.3%.
Defence stocks also got a lift, adding 2% as investors assessed a report that said Prime Minister Keir Starmer plans to push a multinational defence initiative at the Munich Security Conference this weekend.
Weighing on the FTSE 100 were miners such as Rio Tinto and Antofagasta that lost over 2% each, tracking lower copper prices. [MET/L]
On the earnings front, NatWest reported a 24% jump in annual profit and set more ambitious performance targets as it steps up investment in Britain's costly but potentially lucrative wealth-management market.
The British bank's shares, however, fell 3.3% as analysts said much of the upgraded targets were priced in.
The week also brought data that showed Britain's economy grew just 0.1% in the fourth quarter, matching the previous quarter's pace and partly reflecting uncertainty in the run-up to finance minister Rachel Reeves' November budget.
Investors are pricing in a 63.4% chance that the Bank of England will lower borrowing costs by 25 basis points when it meets in March.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shailesh Kuber)
Key Takeaways
- •FTSE indexes remained steady amid global AI concerns.
- •Defence stocks rose due to potential European cooperation.
- •Technology, life insurers, and banks faced weekly losses.
- •NatWest reported a 24% increase in annual profit.
- •UK economy grew 0.1% in the fourth quarter.
Frequently Asked Questions about London's FTSE indexes subdued as investors assess AI concerns; defence stocks gain
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 defence stocks?
Defence stocks are shares in companies that manufacture weapons, military equipment, or provide services to the defense sector.
3What is market volatility?
Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns, indicating the level of risk in the market.
4What is artificial intelligence in finance?
Artificial intelligence in finance refers to the use of algorithms and machine learning to analyze data, automate processes, and enhance decision-making in financial services.
5What is economic growth?
Economic growth is the increase in the production of goods and services in an economy over a period of time, often measured by GDP.
