Finance
UK's FTSE 100 dips as NatWest slides on Evelyn deal
Published by Global Banking & Finance Review®
Posted on February 9, 2026
2 min readLast updated: February 9, 2026
Quick Summary
FTSE 100 dips as NatWest shares fall on Evelyn acquisition, amid UK's political crisis and potential rate cuts by the Bank of England.
FTSE 100 Declines as NatWest Shares Fall Following Evelyn Acquisition
Market Overview and Key Developments
Feb 9 (Reuters) - The FTSE 100 dipped on Monday, as investors focussed on the brewing political crisis in Britain, while bank stocks came under pressure with NatWest leading declines after it agreed to buy wealth manager Evelyn Partners.
Political Crisis Impacting Markets
The blue-chip FTSE 100 fell 0.13% as of 1105 GMT, easing from record highs touched last week. The FTSE 250 midcap index was little changed.
NatWest's Acquisition of Evelyn Partners
British Prime Minister Keir Starmer's chief of staff, Morgan McSweeney, quit on Sunday, saying he took responsibility for advising Starmer to name Peter Mandelson as ambassador to the U.S. despite his known links to sex offender Jeffrey Epstein.
Banking Sector Performance
Polls show Starmer is hugely unpopular with voters after a series of embarrassing U-turns, prompting some in his own party to openly question his judgment and his future. Longer-dated borrowing costs have risen in recent days, suggesting traders think Starmer may be forced out.
Upcoming Economic Data
"Political pressure is building on Starmer to resign. If we do get shift in the premiership, the replacement is likely to be from the pro Left camp which would weigh on the currency and long-term bond yields," said Jefferies economist Mohit Kumar.
Weighing on the FTSE 100, NatWest Group slid 5.5% after it agreed to buy one of Britain's largest wealth managers, Evelyn Partners, for 2.7 billion pounds ($3.68 billion) including debt.
UK banks overall fell 1.2% as investors priced in more rate cuts from the British central bank.
The Bank of England kept interest rates on hold last week, but only after an unexpectedly narrow 5-4 vote, and said borrowing costs are likely to fall if inflation continues to ease.
Data this week, including January retail sales and December GDP figures, could further guide expectations around monetary policy.
Among other stocks, Greggs fell 5% after Jefferies warned that weight-loss drugs could curb sales growth by reducing demand from the bakery chain's customers.
Plus500 rose 5.4% to touch a record high after the online trading platform forecast 2026 results ahead of market expectations.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Leroy Leo)
Key Takeaways
- •FTSE 100 fell 0.13% due to political tensions.
- •NatWest shares dropped 5.5% after Evelyn deal.
- •UK banks fell 1.2% amid rate cut expectations.
- •Political pressure mounts on PM Keir Starmer.
- •Upcoming economic data may influence monetary policy.
Frequently Asked Questions about UK's FTSE 100 dips as NatWest slides on Evelyn deal
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 is an acquisition?
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
3What is monetary policy?
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives.
4What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
5What is a wealth manager?
A wealth manager is a financial advisor who provides specialized services to manage and grow the wealth of high-net-worth individuals.
