London, March 4, 2026, 08:03 GMT — Regular session
Key points:
- Barclays shares slipped again in early London trade, following two steep drops earlier in March.
- Inflation jitters are back as oil and gas prices climb, taking a bite out of rate-cut hopes and weighing on bank shares.
- Attention now shifts to the Bank of England’s decision on March 19 and Barclays’ earnings slated for April 28.
Barclays PLC (BARC.L) edged down 0.4% to 420.9 pence shortly after the open on the London Stock Exchange this Wednesday. The stock started the session at 423.3p, fluctuating from 420.8p up to 424.95p. Earlier in the week, Barclays shed 3.4% on both Tuesday and Monday.
Investors are cutting back on banks, spooked by a surge in oil prices that has put inflation worries back on the table and forced a rethink on rates. “Any ceasefire for now looks like a remote possibility,” said Lindsay James, investment strategist at Quilter, pointing to the escalating Middle East conflict. Reuters
Here’s the thing: bank shares are tightly linked to bond yields and whatever’s ahead for policy rates. If energy prices climb, inflation sticks around, which can drive gilt yields—essentially the interest the UK pays on its debt—higher. That raises borrowing costs just as households and businesses are feeling more pressure.
The FTSE 100 slid 2.8% on Tuesday—worst daily loss in close to a year—as Brent crude surged nearly 7% and European gas prices jumped 15%. “Higher energy prices could prevent the Bank from cutting rates,” said David Rees, head of global economics at Schroders, warning this could also dampen any chance of a growth rebound. Reuters
Barclays tumbled as much as 4.2% Tuesday, HSBC slid 4.7%, and Lloyds Banking Group dropped 3.4%, according to Reuters. Traders, the report added, saw odds of a Bank of England quarter-point rate cut this month at less than one in three.
Barclays disclosed in a filing dated March 2 that it picked up 41.4 million shares under its £1 billion buyback, rolled out in February, paying a volume-weighted average of 470.5603 pence per share. The document also detailed completed purchases tied to a previous repurchase program.
Elsewhere, Barclays is said to be reaching out to tech firms for information as it considers developing a blockchain-driven system for payments and deposits, according to a report from Nasdaq.com. The initiative is still in its initial stages, with a spokesperson declining to comment. The proposed platform could accommodate stablecoins—digital assets linked to fiat currencies.
Traders right now are keyed in on energy prices and gilt yields, rather than individual bank projects. The sector’s behaving more like a macro proxy than anything else.
All eyes are on the Bank of England’s upcoming rate call set for March 19, with Bank Rate sitting at 3.75%. Fresh jolts in oil and gas could keep both rates and bank shares unsettled.
The setup isn’t one-sided. If tensions ease in the Middle East, that might tamp down inflation worries and revive hopes for rate cuts. But if energy prices stay high, growth could take a hit and banks may face more questions about potential loan losses.
Barclays is set to report earnings on April 28. Investors are watching for fresh details on income, credit provisions, and any news on buyback speed.
