London equities began the week on a firmer footing, with financial stocks driving gains ahead of a busy run of economic data that could offer fresh insight into the Bank of England’s next monetary policy move.
The internationally focused FTSE 100 rose 0.41% to 10,488.79 points by 0925 GMT, while the more domestically oriented FTSE 250 advanced 0.36% to 23,513.26.
Banking shares led the blue-chip index higher, with NatWest Group climbing 4.3% and Barclays gaining 2.7%, mirroring a broader rebound in European financials after last week’s sharp selloff.
UK lenders had recorded their steepest weekly decline since late March 2025 on Friday, as concerns that advances in artificial intelligence could disrupt traditional banking models unsettled global markets.
Investors are now turning their attention to key economic indicators due this week, including January consumer inflation and retail sales figures, along with preliminary February manufacturing data.
Although inflation remains well above the Bank of England’s 2% target, markets are currently pricing in a 25-basis-point rate cut next month, amid signs that restrictive monetary conditions are beginning to weigh on the labour market and wider economy.
Among individual stocks, SkinBioTherapeutics plunged 41.4% after the firm disclosed it was investigating its former chief executive over alleged misrepresentation of material financial information to the board and auditors.
Meanwhile, shares in auto services provider Pinewood Technologies slumped 28%, placing it at the bottom of the mid-cap index, after private equity group Apax Partners withdrew from a $792m acquisition agreed in late January, citing challenging market conditions.
