The FTSE 100 was marginally higher on Monday as UK stocks ticked gently higher, with US markets closed for Presidents’ Day and a lack of catalysts to move the needle.
After touching highs around 10,490 in early trading on Monday, the FTSE 100 eased back to 10,470, up 0.2% on the day.
“A strong showing from financials helped to support the FTSE 100 on a quiet day for corporate news,” says Dan Coatsworth, head of markets at AJ Bell.
“NatWest, Barclays and Prudential took the top spots on the FTSE 100 risers’ list. The industrials and real estate sectors were also in demand, while housebuilders were out of fashion amid negative broker comment. Gold was down nearly 1% to trade just above $5,000 per ounce.”
After a torrid week for NatWest, shares showed signs of life as value seekers stepped in, sending the bank to the top of the leaderboard with a 4% gain. NatWest is still 11% lower over the past 10 trading days.
Although Monday was a relatively slow day for blue-chip newsflow, the lull won’t last for long with a raft of updates from large caps slated for the rest of the week.
“It’s another big week for UK investors, led by miners, with Rio Tinto expected to report a strong finish to the year after record production across iron ore, copper and lithium. Cash flow may look lighter thanks to heavy investment, but firmer commodity prices and a clearer path into 2026 should keep the focus on what comes next rather than what’s gone,” explained Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Anglo American’s results should look more mixed, with better iron ore offset by weaker copper and a sharply reduced dividend putting the outlook under the microscope. Shifting to the defence space, BAE Systems reports with strong momentum, a bulging order book and high hopes that rising global defence spending can keep growth ticking over into 2026.”
BAE Systems was higher on Monday, along with Babcock, as traders positioned for reports that the UK government was planning to boost defence spending earlier than previously thought.
Babcock added 3.7% and BAE Systems rose 2.8%.