Finance
London's FTSE indexes on track for weekly gains; geopolitics in focus
Published by Global Banking & Finance Review®
Posted on February 20, 2026
3 min readLast updated: February 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 20, 2026
3 min readLast updated: February 20, 2026
London stocks extended weekly gains led by defence names as geopolitics stayed tense. Traders leaned toward a March BoE cut, while Aston Martin warned on losses and Anglo American took a hit from diamonds.
Feb 20 (Reuters) - Britain's FTSE indexes gained on Friday and were set to end the week higher, led by defence stocks, while expectations for a March rate cut from the Bank of England and easing AI-disruption worries globally also aided sentiment.
The blue-chip FTSE 100 was up 0.6% at around 1134 GMT and was trading just shy of a record high, while the domestically focused FTSE 250 rose 0.5%.
Geopolitical tensions between Iran and the U.S. and the greater likelihood of defence cooperation within Europe helped defence stocks gain 6% this week.
On the earnings front, Aston Martin fell 1.4% after the luxury carmaker warned of a bigger annual loss and said it plans to sell the right to use its name on the Aston Martin F1 Team to bolster its finances after a challenging year.
The broader auto sector lost 1.4% and was the only one in the red.
Anglo American posted a $3.7 billion loss following another write-down in its diamonds business. However, shares added 1.3%, tracking higher base and precious metal prices.
Both FTSE indexes were on track for weekly gains, with the blue-chip index set for its biggest one-week jump in nearly two months.
Investors were relieved by data earlier this week that showed inflation was steadily nearing the central bank's 2% target. Strong manufacturing activity data and retail sales numbers on Friday, however, pointed to the risk of price pressures flaring up.
Still, traders see a 78% chance that the central bank will cut interest rates by 25 basis points when it meets next month to shore up the labour market.
AI-disruption concerns, which had roiled global markets earlier in the month, appeared to temporarily take a back seat.
However, simmering tensions between Iran and the U.S. were in the spotlight after President Donald Trump on Thursday warned Iran must make a deal over its nuclear program or "really bad things" will happen.
Among other movers, Diageo rose 2.7% after a report said new CEO Dave Lewis is planning a major shake-up of his executive team.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)
UK equities advanced for the week, with the FTSE 100 near record levels. Gains were driven by defence stocks, rate-cut expectations from the Bank of England, and steadier risk sentiment.
Heightened tensions supported defence shares and helped lift broader indexes. Investors rotated into companies seen as beneficiaries of increased security spending.
Aston Martin slipped after warning of a larger loss and selling its F1 naming rights, while Anglo American reported a loss linked to diamond write-downs. Select consumer names also firmed.
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