2026.02.0612:55:05UTC+00FTSE 100 Recovers as Banks and Miners Lift Index

London's FTSE 100 saw an uptick to approximately 10,330 points on Friday, rebounding from earlier losses and setting the stage for a second consecutive weekly gain. This positive shift was fueled by Thursday's indications from the Bank of England that interest rates might be reduced if the ongoing decline in inflation becomes a sustained trend. The rally was primarily driven by heavyweight banks, with Barclays, NatWest Group, and Lloyds witnessing share increases ranging from 1.1% to 1.9%. Additionally, mining stocks experienced an upswing as precious metal prices surged, driven by escalating US-Iran tensions and reports of the breakdown in merger discussions between Rio Tinto and Glencore. Conversely, data and software stocks lagged behind due to mounting anxieties over AI's potential disruption to their business models, with RELX dropping over 4% and Experian falling 2.9%. Domestic politics added another layer of caution following revelations about UK ambassador Peter Mandelson's connections to Jeffrey Epstein, presenting a new challenge for Prime Minister Keir Starmer’s leadership.