Metals drive FTSE to new highs amid tech weakness.
This week @ 3:55pm – Friday 27th February – London.
Markets:
- FTSE 100 rose 1.8% this week to 10,870, driven by strong gains in mining stocks as metals prices firmed and a 6.5% monthly rally extended to new record highs.
- S&P 500 fell 0.1% this week to 6,909, driven by caution around AI’s disruptive power of software stocks despite Nvidia’s strong earnings.
- Nasdaq Composite fell 0.1% this week to 25,034, driven by declines in chipmakers including Nvidia, Broadcom and Applied Materials despite solid earnings beats.
- Euro Stoxx 50 fell 0.1% this week to 6,124, driven by strong corporate earnings from Rolls-Royce, Schneider Electric and Engie, offsetting tech sector weakness.
Bonds:
- UK 10-year gilt yields rose 3 bps this week to 4.38%, reflecting safe-haven demand from US tariff concerns and dovish BoE signals following weaker employment data.
- US 10-year Treasury yields fell 1 bps this week to 4.07%, reflecting investor caution over tariff impacts and expectations for Federal Reserve rate cuts.
Commodities:
- Brent crude fell 2.75% this week to $71 per barrel, supported by lingering US-Iran tensions despite diplomatic progress in Oman talks.
- Gold rose 2.26% this week to $5,167 per ounce, as geopolitical risks and central bank buying continued to support demand for the safe-haven asset.
- Copper rose 3.65% this week to $13,215 per tonne, driven by strong economic growth and higher industrial spending.
FX:
- GBP/USD fell 0.1% this week to 1.35, as political uncertainty rose following Labour’s by-election loss in Gorton and Denton, renewing concerns about the government’s fiscal stance.
- EUR/GBP was flat this week at 0.87, as both currencies faced headwinds from tariff concerns and political uncertainty.
Macro:
- UK GfK consumer confidence dips on job fears: The widely tracked UK GfK consumer confidence measure gave back recent gains, with the February headline down three points to -19 versus consensus -15 and prior -16. GfK highlighted that the fall in overall confidence due to a drop in perception of personal finances. GfK flagged the recent increase in unemployment as a factor, along with general job insecurity.
- US mortgage rates dip below 6% but housing market recovery remains constrained by supply issues. President Trump’s new 10% global tariffs took effect this week after the Supreme Court struck down his broader “liberation day” duties. UK businesses expressed relief at the lower rate but uncertainty remains high.
Companies:
- Nvidia reported strong Q4 earnings with revenue of $68.13 billion, beating consensus, and guidance above expectations. However, shares fell 5% as investors questioned AI capital expenditure sustainability.
- Rolls-Royce raised its profit outlook and announced up to a $12 billion share buyback, with shares jumping 4.6% on solid 2025 results.
- London Stock Exchange Group climbed 7.6% after announcing an additional £3 billion share buyback amid pressure from Elliott Investment Management.
- ASML fell 4.5% tracking weakness in Nvidia, despite no company-specific news, as investors worried about slower AI infrastructure spend.
What we will be keeping an eye on next week…
w/c 2nd March 2026
- Key macro: 2 March – US manufacturing PMI, 4 March – February ADP Employment Report and ISM Services PMI, Federal Reserve Beige Book, 5 March – January factory orders.
- Key earnings: Target, Best Buy, CrowdStrike, Broadcom (4 March).
Markets move constantly and the numbers in this update will change. This is a snapshot only, pulled together from a range of sources, and is meant as a quick guide rather than a precise record. It’s not investment advice and shouldn’t be used to make trading or investment decisions. If you need more accurate or specific data over a defined period, please get in touch with a member of the team who will be happy to help.
Important Information
This article is for information only and does not constitute advice or recommendation and you should not make any investment decisions based on it. The views and opinions of this article are those of Casterbridge at the time of writing and may change without notice. Any opinions should not be viewed as indicating any guarantee of return from investments managed by Casterbridge nor as advice of any nature. It is important to remember that past performance and the value of an investment, and any income from it, may go down as well as up and the investor may not get back the original amount invested.