London, Feb 17, 2026, 17:06 GMT — Market closed
London’s FTSE 100 finished higher on Tuesday as investors leaned further into bets that the Bank of England will start cutting rates next month. The blue-chip index ended up 0.71% at 10,548.38, while sterling was down 0.71% versus the dollar; copper slid 3.92% and gold fell 2.81%. (Reuters)
The turn came after fresh labour-market data pointed to slower heat in the economy. Unemployment rose to 5.2% in the three months to December and annual wage growth excluding bonuses eased to 4.2%, the Office for National Statistics said; private-sector wage growth slowed to 3.4%. “The latest UK jobs report keeps the Bank of England firmly on track for a March rate cut,” James Smith, an economist at ING, said. (Reuters)
Most economists in a Reuters poll also flagged March 19 as the next live meeting, with 41 of 63 seeing Bank Rate cut by 25 basis points — a quarter of a percentage point — to 3.50%. “We stick to our call for the next Bank Rate cut to come in March and a final rate cut to come in June,” said Sanjay Raja, chief UK economist at Deutsche Bank. (Reuters)
Inside the market, banks were firmer, but miners and defence names lagged as metals slipped and the safe-haven bid cooled. Antofagasta fell 5% despite a 52% jump in annual core profit, while Plus500 slid 6.4% after it said its CEO, CFO and CMO would sell an aggregate 1.5 million shares; tech rose 1.7% with RELX up 2.3% and Experian 1.3%. (Reuters)
InterContinental Hotels Group also drew attention after it launched a $950 million share buyback and proposed a 10% dividend increase, even as the Holiday Inn owner flagged a softer U.S. quarter. “The RevPAR so far has been positive,” Chief Financial Officer Michael Glover said, referring to revenue per available room, a key hotel industry measure; U.S. RevPAR fell 2% in the fourth quarter, lagging Hilton and Marriott. (Reuters)
Away from the blue chips, Raspberry Pi was the standout in London’s midcaps after a filing showed CEO Eben Upton bought about 13,224 pounds worth of shares at roughly 282 pence each. Asked about the move, the company said: “There’s nothing from the company side beyond what’s already in the public domain.” (Reuters)
The market is heading into the second half of a data-heavy stretch. On Monday, the FTSE 100 ended up 0.26% at 10,473.69 while the FTSE 250 fell 0.22% as Pinewood dropped 32.6% after Apax Partners withdrew its buyout bid, and investors kept an eye on UK inflation and retail sales due this week. (Reuters)
But the rate-cut story still has a big trapdoor. A hotter CPI reading, or signs that wage pressures are not cooling as fast as markets hope, could unwind the March cut trade quickly and flip the pound and rate-sensitive stocks the other way.
Next up is Wednesday’s UK inflation print, with Fed minutes also due on Wednesday and U.S. GDP figures on Friday, as traders stay alert for geopolitical headlines that can move energy and risk appetite. (Reuters)
