UK stocks, pound rise
The blue-chip index FTSE 100 gained 0.6% and the British GBP/USD added 0.7% against the dollar to 1.33
British stocks traded higher on Monday while the pound edged up as Middle East tensions persisted, with U.K. Prime Minister Keir Starmer saying the country would not be drawn into the wider Iran war and would continue working toward a swift resolution.
The blue-chip index FTSE 100 gained 0.6% and the British GBP/USD added 0.7% against the dollar to 1.33.
The DAX index in Germany advanced 0.6% and the CAC 40 in France rose 0.3%.
Citi expects the Bank of England’s Monetary Policy Committee to hold the Bank Rate at 3.75% at its meeting on Thursday, removing an April cut from its forecast as the UK faces another energy shock amid Middle Eastern conflict.
The bank now sees the cutting cycle ending at 3.25%, with cuts expected in June and September, up from its previous terminal rate forecast.
Standard Life PLC narrowed its full-year 2025 statutory loss after tax to £394 million from £1.08 billion a year earlier, the company reported, though £604 million in hedging-related accounting charges offset a 15% rise in adjusted operating profit.
The charges resulted from the company’s program to protect Solvency II capital against equity and interest rate movements. The FTSE 100 advanced 21.5% in 2025, working against the hedges under IFRS rules while leaving cash generation intact.
Standard Life, which renamed itself from Phoenix Group Holdings three weeks ago, saw the accounting impact overwhelm operational gains during the period.
In separate UK corporate news, Marshalls PLC on Monday reported a 55% fall in full-year profit before tax to £17.7 million for the year ended Dec. 31, 2025, even as revenue increased 2% to £632.1 million. The British building products manufacturer cut its dividend for a second consecutive year.
Basic earnings per share dropped 54% to 5.7 pence from 12.3 pence. Reported operating profit declined 41% to £32 million from £53.9 million. The company proposed a total dividend of 6.7 pence, down 16% from 8 pence a year earlier. Net debt increased to £137.9 million from £133.9 million.