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London’s blue chip index underperformed against its peers in Paris and Frankfurt on Monday midday; meanwhile the FTSE 250 was higher despite bakery chain Greggs falling after Jefferies cut the stock to ’hold’ from ’buy’ and slashed its price target. The FTSE 100 index was down 12.71 points, 0.1%, at 10,357.04. The FTSE 250 was up 58.79 points, 0.3%, at 23,266.86, and the AIM all-share was up 5.78 points, 0.7%, at 812.58. The Cboe UK 100 was marginally lower at 1,034.63, the Cboe UK 250 was up 0.3% at 20,582.63, and the Cboe small companies was up 0.2% at 18,599.76. The pound was quoted at $1.3642 at midday on Monday in London, higher compared to $1.3612 at the equities close on Friday. The euro stood at $1.1869, higher against $1.1814. Against the yen, the dollar was trading at JP¥156.46, lower compared to JP¥157.04. Russ Mould, investment director at AJ Bell said: ‘Politics were front of mind for investors in the UK after the resignation of chief of staff, Morgan McSweeney. Gilt yields and the pound nudged slightly higher as markets digested ongoing speculation about the future of Keir Starmer as prime minister. Movement among government bonds and the currency suggests there is no panic on financial markets about the stability of the UK government.’ Keir Starmer’s director of communications quit on Monday, a day after the prime minister’s chief of staff stepped down. ‘I have decided to stand down to allow a new No 10 team to be built,’ Tim Allan said in a statement. ‘I wish the PM and his team every success’. Allan, a former adviser to Tony Blair’s government, was appointed in September as Starmer sought to improve communications across his administration. On Sunday, Morgan McSweeney left Starmer’s team, saying he took ‘full responsibility’ for advising the prime minister to appoint Peter Mandelson as US ambassador in 2024. Sterling and gilts came under pressure earlier on Monday as the leadership crisis threatening Keir Starmer unsettled some investors concerned about the risk of a political shift to the left. UK borrowing costs climbed, with the 10-year yield rising 0.05 percentage points to 4.56%, underperforming other European bond markets. Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index down 0.3%, and the Nasdaq Composite down 0.4%. The yield on the US 10-year Treasury was quoted at 4.23%, widening from 4.22%. The yield on the US 30-year Treasury was quoted 4.88%, widening from 4.87% on Friday. In European equities on Monday, the CAC 40 in Paris was marginally higher, while the DAX 40 in Frankfurt was up 0.3%, after Germany’s economy minister Katherina Reiche drafted legislation to reform the expansion of electricity grids and renewable energy. The draft bill, seen by dpa, aims to better synchronise the expansion of facilities with grid development while reducing costs. Reiche, who took office in May last year, has argued for a greater focus on affordability and supply security amid Germany’s stuttering economy. Investor sentiment in the eurozone improved in February, according to survey results published by Sentix on Monday. The overall index for the eurozone rose to plus 4.2 in February, the highest since July, from minus 1.8 in January. The current situation index climbed to minus 6.8, the strongest reading since April 2023, from minus 13.0. The expectations index jumped to plus 15.8 from plus 10.0, also the highest since July. For Germany, the overall index rose to minus 6.9 in February from minus 16.4 in January. The current situation index improved to minus 27.5 from minus 36.0, while expectations surged to plus 16.3 from plus 5.5. All three readings were the strongest since July. Manfred Hubner, managing director at sentix, said: ‘Germany remains an economic surprise package. Order intake for German industry recently took investors by surprise. And they are impressed by the latest survey. Institutional investors in particular are revising their stance significantly, resulting in a sharp rise in economic expectations. In the headline index, this leads to a jump of almost 10 points to plus 16.3 points. This could mean the end of the recessionary phase of the German economy.’ Back in London, NatWest remained at the bottom of the FTSE 100, extending losses to 5.7% after unveiling its first major acquisition since returning to private ownership. The bank confirmed a £2.7 billion deal to buy wealth manager Evelyn Partners, alongside a new £750 million share buyback. Unilever was down 0.7% after Deutsche Bank Research cut the stock to hold’ from buy’ and reduced its price target to 5,150 pence. Miners were higher on the blue-chip index, supported by a rise in gold prices to $5,013.00 an ounce from $4,946.87 late on Friday. On the FTSE 250, Greggs fell 4.8% after Jefferies cut the stock to ’hold’ from ’buy’ and slashed its price target to 1,610 pence from 2,500 pence. Dunelm rose 1.1% after Jefferies upgraded the homewares retailer to ’buy’ from ’hold’ and lifted its price target to 1,075 pence. Among smaller caps, YouGov gained 1.7% after announcing that long-serving Chief Financial Officer Alex McIntosh has stepped down with immediate effect after 19 years at the company. He will remain during his notice period to ensure an orderly transition, with James Davies appointed interim CFO from February 12. Phoenix Copper plunged 51% after suspending its executive chair and chief financial officer with immediate effect as it launched an investigation into their conduct and historic payments to former adviser Lloyd Edwards-Jones SAS. The company said it has limited working capital but expects to have sufficient cash until early in the second quarter of 2026. Brent oil was quoted at $68.22 a barrel at midday in London on Monday, down from $68.47 late Friday. Still to come on Monday’s economic calendar are US consumer inflation expectations. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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