UK equities are pointing higher at the open, with FTSE 100 futures up about 0.4% in early trading after the index ended last week close to another record. The upbeat tone is broadly in step with gains across Europe, as global markets begin the week in a risk-on mood.
Sterling is roughly flat heading into the session, trading around $1.36 versus the dollar. Traders are watching for any further pricing of domestic political risk following the weekend resignation of Prime Minister Keir Starmer’s top aide, Morgan McSweeney, which adds another layer of uncertainty for UK assets.
The pound later edged about 0.1% lower against the dollar and slipped beneath $1.36, while it weakened against the euro as the single currency rose around 0.4% to more than 87 pence. Options positioning has also reflected a shift toward hedging sterling weakness versus the euro in the near term, with demand for protection rising to the highest level since late November last week.
Beyond politics, markets were already leaning toward a softer pound after Thursday’s Bank of England meeting and a dovish signal on the outlook. Expectations around the policy path and how quickly inflation pressures cool remain a key driver for sterling and gilt pricing (see the central bank’s latest updates from the Bank of England).
On the data front, a new report from the Recruitment and Employment Confederation indicated that employers continued to cut permanent hiring in January, but the pace of decline was the softest in 18 months. The result suggests that while the hiring downturn that began in 2022 is still in place, the jobs picture may be stabilising.
The same survey showed companies increased temporary staff placements for the first time since October, hinting that firms may be adjusting staffing needs rather than simply pulling back. With uncertainty in the run-up to last autumn’s budget now easing, businesses appear to have a greater degree of confidence, even as they continue to grapple with higher employment taxes that came into force last spring.
In corporate news, NatWest agreed to buy wealth manager Evelyn Partners for an enterprise value of £2.7 billion and said it will launch a new £750 million share buyback. The bank said the deal increases its exposure to capital-light, higher-growth personal banking and wealth management, lifting this segment to around 20% of group customer assets and liabilities.
The acquisition is also notable as NatWest’s largest takeover since its bailout during the 2008 global financial crisis. Evelyn Partners brings £69 billion in assets under management and administration, and the transaction is set to bolster NatWest’s Coutts private banking arm, reflecting a broader trend among UK lenders toward wealth management, savings and investment businesses.
Other company updates this morning included:
- YouGov said CFO Alex McIntosh is stepping down to pursue other opportunities, with James Davies appointed to the role on an interim basis from Feb. 12. Davies previously served as CFO at OVO Energy and Monzo Bank.
- Centrica sold its European energy solutions units and Panoramic Power for total proceeds of more than £80 million.
- Warpaint bought the Barry M makeup brand for a cash consideration of £1.4 million and said it expects to return to organic growth across the group.
- Plus500 said 2025 performance was ahead of expectations, helped by cost management and a broader revenue base. The firm said trading so far in 2026 has been supported by positive momentum across global markets, and it expects full-year performance to be ahead of market estimates. It announced $100 million in share buybacks and a final dividend of 43.1 cents per share.
The global backdrop is supportive for risk assets. US stocks ended last week strongly, with the S&P 500 up 2% on Friday, and that confidence has carried into Asia, where Japanese stocks surged after Prime Minister Sanae Takaichi’s party secured a landmark election victory. The Nikkei 225 rose around 3.8% and bond yields moved higher, while the yen fluctuated before strengthening as trading progressed.
Commodities have also firmed, with gold and silver higher after a turbulent week, and both continuing to rally alongside equities this year. Bitcoin has rebounded toward $70,000 after briefly nearing a dip below $60,000 last week. US Treasuries, however, are weaker after China urged banks to curb exposure to US bonds due to concentration risks and market volatility.
Taken together, the early session points to a constructive open for UK stocks, with the FTSE 100 supported by broad European strength and a revived risk appetite, even as sterling traders keep a close eye on domestic politics and the shifting interest-rate outlook.
Source of information: Bloomberg Markets Today live blog (Feb. 9, 2026)
