London, Feb 26, 2026, 17:48 GMT — Market closed.
- FTSE 100 closed 0.4% higher, notching a fresh record at 10,846.70. FTSE 250 matched that gain, rising 0.4% as well.
- Rolls-Royce surged following upbeat results and raised guidance. LSEG climbed, with investors reacting to the £3 billion buyback plan.
- March rate-cut bets are in focus, and investors are also sizing up the UK’s Spring Forecast, set for March 3.
The FTSE 100 notched a new record close Thursday, lifted by strong performances from Rolls-Royce and London Stock Exchange Group. Investors shrugged off nerves around major U.S. tech names, instead zeroing in on positive UK corporate updates.
The index extends its sharp February rally. FTSE 100 has climbed roughly 6% month-to-date, as traders hold to expectations for another Bank of England rate cut in March—a scenario helping UK equities hold up better than certain international counterparts.
Valuations play a role in the narrative. “It is likely that the UK index’s outperformance is here to stay,” said IG senior financial analyst Axel Rudolph, who flagged the FTSE’s lower price-to-earnings ratio—a straightforward metric for what investors shell out per pound of profit—relative to the richer multiples seen in U.S. tech. MarketScreener
Rolls-Royce surged to the top of the pack after raising its outlook and announcing a multi-year share buyback, dividends in tow. “Our transformation continues with pace and intensity,” chief executive Tufan Erginbilgiç said, as the company laid down new 2026 goals—targeting underlying operating profit between £4.0 billion and £4.2 billion. Rolls-Royce
The engine maker’s latest update put aerospace profits in sharper relief. Reuters noted Rolls-Royce is benefiting from strong airline engine orders and a boost from new data-centre work, and singled out GE Aerospace as its key widebody competitor.
London Stock Exchange Group moved higher, boosted by news of an extra £3 billion buyback—a response to activist Elliott Management’s demands and fresh anxiety that AI might threaten segments of its data arm. CEO David Schwimmer, speaking to reporters, dismissed those fears, calling it “verging on impossible” for AI to duplicate the group’s proprietary datasets. Reuters
Things looked rougher for others. Hikma Pharmaceuticals slid lower, flagging weaker growth; Reuters pointed to injectables as the sticking point for its forecast.
Wednesday’s session rewrote expectations. The FTSE 100 jumped 1.18% to 10,806.41, lifted by HSBC’s upgraded profitability target and a surge in mining stocks as metals prices advanced. “This strategy appears to be working,” AJ Bell investment director Russ Mould said, referencing HSBC’s new focus on wealth clients and fewer regions. Reuters
HSBC’s latest numbers shed more light on its strategic shift. The bank raised its return on tangible equity goal to “17% or better” through 2028, despite recording $4.9 billion in one-off charges. CEO Georges Elhedery described the firm as turning into “a simple, more agile, focused bank.” Reuters
This rally isn’t bulletproof. A hot inflation print could upend rate-cut bets in a hurry. Investors are still squabbling over whether the AI surge will actually pay off — some corners of tech are already feeling the pinch. Now, politics is back in the mix, with looming elections and a jumpy home front piling on more question marks.
Investors are turning their attention to Chancellor Rachel Reeves’ Spring Forecast on March 3, a day the Office for Budget Responsibility will release fresh economic and fiscal projections. Substantial shifts in policy aren’t expected, but the update still lands in focus.
