London’s FTSE indexes experienced a modest increase on Monday, driven by gains in financial stocks as the market anticipates a week filled with economic data that may provide additional insights into the central bank’s forthcoming monetary policy trajectory. The internationally-focused FTSE 100 edged up 0.41% to 10,488.79 points by 0925, while the domestically-focused FTSE 250 index climbed 0.36% to 23,513.26 points.

British banks such as NatWest and Barclays added 4.3% and 2.7%, respectively, leading the gains on the blue-chip index, tracking a broader recovery in European financial stocks after last week’s selloff. UK lenders had logged their biggest weekly fall since late-March 2025 on Friday, as jitters about artificial intelligence models disrupting traditional business swept through global markets.

In the coming week, attention will be focused on the January consumer inflation and retail sales data from the UK, alongside the initial estimates for manufacturing activity in February. Inflation remains significantly above the Bank of England’s 2% target, yet investors are anticipating a 25-basis-point interest rate cut next month, prompted by indications that stringent monetary conditions are impacting the labor market and the overall economy. Among other movers, SkinBioTherapeutics tumbled 41.4% after the British dermatology company announced it was investigating its former CEO, believing he misrepresented material financial information to the board and auditors.

Auto service provider Pinewood experienced a significant decline of 28%, placing it at the bottom of the mid-cap index, following the decision by private equity firm Apax Partners to terminate the $792 million deal announced in late January, attributing the move to challenging market conditions. A broader decline in base and precious metals weighed on the materials sector, which was among the top sectoral decliners.