FTSE 100 Edges Higher as Pinewood Slumps and Investors Brace for Key UK Data

London’s main stock indexes delivered a mixed performance at the start of a data heavy week, with the FTSE 100 closing modestly higher while the FTSE 250 slipped. Investor attention is firmly fixed on upcoming economic releases that could influence expectations for Bank of England interest rate policy.

The FTSE 100 rose 0.26 percent to finish at 10,473.69 points, supported by gains in defence and banking stocks. In contrast, the more domestically focused FTSE 250 fell 0.22 percent to 23,375.47 points, weighed down by sharp losses in individual midcap names.

One of the day’s biggest movers was Pinewood, whose shares plunged 32.6 percent after private equity firm Apax Partners withdrew its 792 million dollar takeover bid. The deal had been announced in late January but was scrapped citing challenging market conditions. The decline marked Pinewood’s steepest single day fall since 2007 and made it the largest loser on the midcap index.

Defence stocks led sector gains after reports suggested the British government may consider accelerating plans to increase defence spending to 3 percent of economic output. The sector rose around 2.5 percent as investors responded to expectations of higher public investment. Discussions at the Munich Security Conference over the weekend reinforced the theme of greater European military cooperation amid shifting global security dynamics.

Banking stocks also provided support to the blue chip index. NatWest climbed 4.7 percent while Barclays advanced 1.5 percent, tracking a broader recovery across European financial shares. The banking sector had experienced its largest weekly decline since late March 2025 in the previous session, amid market jitters linked to developments in artificial intelligence technology and its impact on global equities.

Elsewhere, Rosebank Industries slipped 2 percent after confirming it is in advanced talks to acquire two US based businesses owned by private equity firms in a deal valued at 3.05 billion dollars. Meanwhile, SkinBioTherapeutics saw its shares tumble nearly 50 percent after announcing it was investigating its former chief executive.

Markets are now turning their focus to a series of economic reports due later this week. January inflation figures, retail sales data and preliminary readings on February manufacturing activity are expected to offer fresh insight into the strength of the UK economy. Although inflation remains above the Bank of England’s 2 percent target, investors are increasingly pricing in a 25 basis point interest rate cut next month, reflecting signs that tighter monetary conditions are weighing on growth and employment.

With economic indicators set to dominate headlines, traders are preparing for potential volatility as new data shapes expectations for the path of UK monetary policy.