London Stocks: FTSE 100 and FTSE 250 Daily — 2026-09-18
The FTSE 100 saw mixed performance this week, with mining stocks rallying to offset pressure from oil majors and financials, while the index hovered near 10,650–10,700 points. The Bank of England maintained its bank rate at 3.75% in September, signaling a cautious stance amid sticky inflation, while the London Stock Exchange continues to grapple with a decade-low in listings as major firms migrate to New York.
London Stocks: FTSE 100 and FTSE 250 Daily — 2026-09-18
Top developments
Mining Rally Offsets Oil Volatility
On September 16, the FTSE 100 closed 39 points lower at 10,658.13, as losses in financial stocks and oil majors were partially cushioned by a strong performance in the mining sector. By September 17, mining stocks continued to lead gains, helping the index edge higher despite broader unease over oil prices and AI safety debates. This divergence highlights the index's sensitivity to commodity cycles, where miners like Rio Tinto and Anglo American provide a hedge against energy-driven inflation fears that weigh on utilities and banks.
Bank of England Holds Rate at 3.75%
In its September meeting, the Monetary Policy Committee (MPC) voted to maintain the Bank Rate at 3.75%, aligning with market expectations but leaving a hawkish split among members. The decision keeps gilt yields under pressure, with 10-year yields easing slightly to 5.25% on September 17 after hitting recent highs. For London-listed banks, this pause supports net interest margins but signals that further hikes remain possible if inflation does not cool, keeping sterling sensitive to future US Federal Reserve moves.
LSE Listings Hit Decade Low Amid US Migration
The London Stock Exchange reported a decade low in new listings, as companies continue to flee for US markets. Recent high-profile exits include Flutter Entertainment, which completed its move to New York in August 2026, and easyJet, which agreed to a US takeover. This structural drain reduces liquidity in the FTSE 100 and FTSE 250, forcing remaining domestic firms to compete for shrinking institutional capital flows, often resulting in lower valuations compared to their New York counterparts.
Oil Prices Ease, But Inflation Fears Persist
After topping $100 a barrel earlier in the week, Brent crude eased, providing temporary relief to energy-heavy indices. However, the earlier spike had pushed UK two-year gilt yields to 4.629%, fueling inflation concerns that weighed heavily on housebuilders and retailers. The volatility in oil prices remains a key driver for BP and Shell shares, which saw significant swings against the backdrop of geopolitical tensions and supply concerns.
Local view
German financial media noted that the FTSE 100's recovery was driven largely by bank values and mining stocks, with falling oil prices providing a tailwind for the broader market. Ad-hoc-news.de highlighted that while the index gained 0.52% on one session, the underlying sentiment remained cautious due to the "oil price collapse" impacting energy conglomerates differently than the rest of the market. Meanwhile, aktien.news pointed out that Marks & Spencer (M&S) hit a low due to inflation data weighing on retail, even as banks and miners rallied.
Context & numbers
- FTSE 100 Close (Sep 16): 10,658.13 (down 39 points)
- FTSE 250: Slipped back into the red during the same session, reflecting broader mid-cap weakness
- UK 10-Year Gilt Yield: 5.25% (as of Sep 17)
- Sterling/USD: 1.34 (+0.07%)
- UK M&A Value: £124.2 billion in H1 2026, more than double the previous year, though deal count fell
On the radar
- US Fed Policy: Markets are closely watching the aftermath of the Fed's recent rate hike, which signaled another potential increase this year, impacting global risk assets and sterling.
- Geopolitical Tensions: Beijing's push for US-Iran talks is being monitored for potential impacts on oil supply chains and mining commodity prices.
- LSE IPO Pipeline: Investors are looking for signs of stabilization in the new listings pipeline after Flutter Entertainment's exit and Schroders' acquisition by Nuveen.
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