Investing.com — British stocks traded higher on Tuesday, extending gains from the previous session, while the pound strengthened above the $1.33 mark, as European markets also turned positive amid rising oil prices due to Middle East tensions.
Focus this week is on upcoming central bank meetings and geopolitical developments, with Jefferies expecting both the Federal Reserve and the European Central Bank to adopt a wait-and-see stance amid uncertainty while maintaining its view of fading the hikes priced into the front end of the Europe curve.
The blue-chip index rose 0.8% and the British pound rose 0.2% against the dollar to 1.3329. The index in Germany gained 0.7%, the in France rose 0.5%.
BoE decision this week
The Bank of England is expected to keep its Bank Rate unchanged at 3.75% when it meets this week as policymakers evaluate the economic impact of rising energy prices following the Iran conflict, according to multiple bank forecasts published Tuesday.
Bank of America said in a research note that the central bank will likely maintain rates while assessing the effects of higher energy costs. The bank projects UK growth of 1.2% in 2026 and 1.4% in 2027, with inflation at 2.2% and 2.0% respectively, though it noted the recent energy price surge has introduced stagflationary risks.
UBS economist Dean Turner also expects the Bank of England to hold rates steady at the meeting, which comes as the US conducted another wave of strikes on Iranian military sites, including Kharg Island. The energy facilities at Kharg Island, which handle an estimated 90% of Iran’s crude oil exports, were not affected by the strikes.
JP Morgan revised its UK economic forecasts Tuesday following sustained increases in energy prices, now expecting the Bank of England to delay rate cuts until the first quarter of 2027. The bank assumes oil prices will remain around $100 per barrel through the end of April before declining gradually toward $75 by year-end. Gas prices are projected to average close to €45 per megawatt-hour for 2026 based on recent futures curves.
JP Morgan now forecasts UK inflation to average 2.9% in the second half of 2026, up from a previous estimate of 2.2%. The bank estimates the direct impact on headline inflation will reach 0.6% by the third quarter of this year, with higher petrol and diesel prices accounting for 0.2% to 0.3% of the revision and domestic energy bills contributing 0.3% to 0.4%.
UK round up
Trustpilot Group PLC (LON:TRST) reported fiscal 2025 results that exceeded profit expectations and issued fiscal 2026 guidance ahead of analyst estimates, driven by momentum in artificial intelligence search visibility and enterprise customer growth.
The online review platform reported revenue of $261.1 million for the year ended December 31, 2025, up 20% on a constant currency basis from $210.7 million a year earlier. Adjusted EBITDA reached $40.7 million, beating the company-compiled consensus of $38.5 million by 5.7%. Adjusted diluted earnings per share came in at 4.8 cents, compared with the consensus of 5.0 cents.
Wickes Group PLC (LON:WIX) on Tuesday reported full-year adjusted profit before tax of £49.9 million for the 52 weeks ended December 27, 2025, beating analyst consensus of £48.2 million and marking a 14.4% increase from £43.6 million in the prior year. Revenue rose 5.9% to £1,636.2 million, compared with £1,544.5 million in 2024.
The home improvement retailer’s retail division generated revenue of £1,208.9 million, up 6.5%, while its Design & Installation business grew 4.4% to £427.3 million. The company said operating leverage and productivity partially offset cost inflation during the period.
Ashtead Technology Holdings PLC (LON:ATAS) on Tuesday reported full-year 2025 revenue of £203.2 million, up 21% year-over-year, as the subsea technology provider reiterated its confidence in delivering progress through 2026 despite monitoring geopolitical volatility in the Middle East.
The company posted adjusted earnings per share of 49.4 pence for the year ended December 31, 2025, representing a 10% increase from 45.0 pence in the prior year. Revenue growth was driven by organic expansion of 3% and a 19% contribution from the acquisitions of Seatronics and J2 Subsea, offset by a 1% foreign exchange headwind.
Close Brothers Group plc (F:CBRO) reported lower first-half profit as a smaller loan book weighed on income, while cost discipline and improving credit quality helped offset the impact of the motor finance commission issue. Adjusted operating profit fell 19% to £65.2 million for the six months to January 31, 2026.
On a statutory basis, the lender posted a pre-tax loss of £65.5 million, driven by a £135 million provision booked in October for potential motor finance redress, part of an industry issue linked to commission arrangements on car loans.
Sthree Plc (LON:STEMS) reported an 8% decline in first-quarter net fees on Tuesday and said its chief financial officer would step down, as weakness across European markets offset growth in the United States and Japan.
The global STEM workforce consultancy posted group net fees of £71.7 million for the three months ended February 28, down from £78.4 million a year earlier.
Travis Perkins PLC (LON:TPK) posted a full-year loss after tax of £176 million for 2025, against a loss of £77 million a year earlier, marking the third consecutive year of material charges after taking £222 million in write-downs across its Merchanting and Toolstation businesses.
The London-listed group’s operating loss widened to £97 million from a profit of £2 million in 2024. Adjusted operating profit, which strips out the charges, fell to £133 million from £152 million, beating RBC Capital Markets’ estimate of £128 million and market consensus of £132 million.
Essentra PLC (LON:ESNT) on Tuesday reported full-year 2025 results in line with analyst expectations, with revenue of £302.0 million and adjusted earnings per share of 6.1 pence, though margins contracted amid operational challenges.
Revenue rose 2.5% on a constant currency basis compared with the prior year, though reported revenue was flat at £302.0 million versus £302.4 million in 2024. All three geographic regions delivered constant currency growth, with EMEA up 2.6%, Americas up 2.0%, and APAC up 3.1%. Adjusted operating profit fell to £32.0 million from £40.1 million, with adjusted operating margin declining to 10.6% from 13.3%.
Boku Inc (LON:BOKU) on Tuesday reported full-year 2025 results that aligned with its January trading update, showing revenue growth of 30% to $128.8 million as the payments technology company expanded across key markets.
The company’s EMEA region led growth with a 39% increase in the second half, while Total Payment Volume climbed 27% to $15.7 billion. Adjusted EBITDA rose 36% to $41.3 million, representing a margin of 32.1%.
Finland, the Netherlands, and the United Kingdom announced Tuesday they are exploring a new mechanism for defence financing and procurement, aiming to launch the initiative by 2027.
The three NATO allies said the mechanism would seek to aggregate demand, drive joint procurement, accelerate defence investment, and increase the availability of critical capabilities such as munitions as they expand shared defence and security commitments.
The announcement comes as threats from hostile actors, including Russian aggression in Ukraine, are causing global instability and disrupting the rules-based international order, according to the joint statement.
