UK equities opened lower on Friday, extending losses from the previous session, while sterling strengthened against the dollar and European markets weakened on the back of disappointing earnings. The FTSE 100 was down around 0.5% by mid-morning, while the pound rose 0.2% to roughly $1.357. Across Europe, the STOXX 600 slipped 0.2%, Germany’s DAX edged up 0.1%, and France’s CAC 40 fell 0.7%, reflecting uneven regional sentiment.
Elsewhere in Europe, shares in Stellantis NV plunged more than 18% after the carmaker disclosed around €22.2bn of charges for the second half of 2025, adding to broader pressure on equity markets.
In UK corporate news, Rio Tinto (LSE:RIO) confirmed it is no longer considering a merger or business combination with Glencore (LSE:GLEN). The decision brings an end to speculation over a potential tie-up as major miners position themselves for strategic shifts in 2026. Analysts note that, even without a deal, the sector is expected to pursue portfolio reshaping and other strategic moves as critical minerals such as copper, gold and lithium take on greater importance in national security and energy transition strategies.
Shares in Victrex (LSE:VCT) fell more than 7% after the company reported a 6% year-on-year decline in first-quarter revenue. Victrex posted revenue of £62.4m for the three months to 31 December 2025, compared with £66.6m a year earlier. Sales volumes fell 4% to 858 tonnes, while average selling prices eased 2% to £73 per kilogram, reflecting softer demand across several end markets.
HgCapital Trust (LSE:HGT) reported a net asset value per share of 561.9p at 31 December 2025, delivering a 2.2% return for the fourth quarter. The trust said its portfolio companies achieved last-twelve-months revenue growth of 17% and EBITDA growth of 20% as of the end of November, with the EBITDA margin improving slightly to 34%.
On the macro front, the Bank of England voted 5–4 on Thursday to keep interest rates unchanged, striking a more dovish tone that has shifted some market expectations toward a possible rate cut as early as March, although consensus still points to the second quarter. Markets are finding it difficult to fully price in two 25 basis point cuts this year, with political uncertainty also in focus. Analysts at ING said sterling could come under pressure, with EUR/GBP supported around the 0.8670–0.8680 area and a bias toward 0.88 over the coming month.
Leave a Reply