Feb 16 (Reuters) - London's FTSE indexes edged higher on Monday, as financial stocks gained heading into a week packed with economic data that could give further clues on the central bank's future
FTSE 100 Rises as Pinewood Shares Plunge Amid Market Data Week
Market Overview and Key Developments
Feb 16 (Reuters) - London's FTSE 100 ended higher on Monday at the start of a data-packed week, while Pinewood was the biggest midcap loser after private equity firm Apax withdrew its bid.
FTSE Index Performance
The FTSE 100 edged up 0.26% to 10,473.69 points, while the domestically-focused FTSE 250 index ended 0.22% lower at 23,375.47 points.
Sector Performance
Defence stocks added 2.5% and led sectoral gains after a report that the British government was considering bringing forward its target to spend 3% of economic output on defence.
Impact of Economic Data
The Munich Security Conference over the weekend also highlighted the need for greater military cooperation within Europe at a time when U.S. policies have upended the global world order on security.
Meanwhile, British banks NatWest and Barclays added 4.7% and 1.5%, respectively, tracking a broader recovery in European financial stocks.
British banks logged their biggest weekly fall since late-March 2025 on Friday, as jitters over artificial intelligence models swept through global markets.
Pinewood shares fell 32.6% and logged their biggest daily drop since 2007 as Apax axed the $792 million deal it announced in late January, citing challenging market conditions.
Meanwhile, British investment firm Rosebank Industries <ROSE.L> slipped 2% after saying that it is in advanced talks to buy two private equity-owned U.S. businesses for $3.05 billion.
And shares in SkinBioTherapeutics lost nearly half their value after the British dermatology company said it was investigating its former CEO.
Further ahead, this week will bring reports on UK January consumer inflation and retail sales, along with February's initial estimates on manufacturing activity.
Inflation is still not close to the Bank of England's 2% target, but investors are pricing in a 25 basis point interest rate cut next month on signs that tight monetary conditions are weighing on the labour market and the broader economy.
(Reporting by Johann M Cherian in Bengaluru; Editing by Harikrishnan Nair and Alexander Smith)
