Published by Global Banking & Finance Review®
Posted on February 20, 2026
3 min readLast updated: April 3, 2026
Add as preferred source on GoogleLondon 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.
By Tharuniyaa Lakshmi
Feb 20 (Reuters) - Britain's stock indexes climbed on Friday, finishing the week higher, after the U.S. Supreme Court struck down President Donald Trump's tariffs, while expectations of a Bank of England rate cut in March and easing concerns over AI disruption also lifted sentiment.
The blue-chip FTSE 100 closed up 0.5% after hitting a record high in intraday trading at 10,745.76 points. The index also marked its biggest weekly jump since mid-December.
The domestically focused FTSE 250 rose 0.7% and ended the week higher.
The U.S. Supreme Court on Friday struck down Trump’s sweeping tariffs, but Britain said it still expects its privileged trading relationship with the United States to remain in place.
Meanwhile, geopolitical tensions in the oil-rich Middle East and the greater likelihood of defence cooperation within Europe helped defence stocks gain 6.7% 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 among the few sectors in the red.
Anglo American posted a $3.7 billion loss following another write-down in its diamonds business. However, shares added 1%, tracking higher base and precious metal prices.
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.
Chris Beauchamp, chief market analyst at IG Group, said that the FTSE has become a rare safe haven this year, with cheap valuations and steady momentum pulling investors out of overheated U.S. tech names, while the broader risk-on tone remains in place.
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 Trump on Thursday warned Iran must make a deal over its nuclear program or "really bad things" will happen.
Among other movers, Diageo rose 3.9% 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 and Sharon Singleton)
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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