British stocks opened weaker on Friday, extending a modest pullback from the prior session as a combination of corporate results and specific company announcements weighed on investor appetite.
At 08:36 GMT the FTSE 100 was down 0.5%. The British pound strengthened 0.2% against the U.S. dollar to 1.3569, roughly holding around the $1.35 level.
Across the continent, shares were generally lower. The STOXX 600 fell 0.2%, while Germany's DAX inched up 0.1% and France's CAC 40 declined 0.7% as investors digested a stream of earnings and company-specific headlines.
Company-specific moves
Automotive group Stellantis NV plunged more than 18% after the company disclosed roughly 22.2 billion in charges for the second half of 2025. The scale of the announced charges drove a sharp re-pricing in the automaker's stock at the open.
In mining sector developments, Rio Tinto confirmed on Friday that it is no longer considering a merger or business combination with Glencore. The announcement comes as miners reassess strategic options ahead of 2026; the statement noted that minerals and mining are playing an increasing role in national security strategies in what analysts call a global Critical Minerals paradigm shift.
The note on mining suggested companies in the sector are likely to pursue proactive strategic changes throughout 2026. Those adjustments are expected to include portfolio moves to better position firms for perceived opportunities in copper, gold, lithium and other emerging areas while focusing on driving shareholder value.
Specialty polymer supplier Victrex reported a 6% decline in first-quarter revenue. The company said revenue for the three months ended December 31, 2025, was a362.4 million, down from a366.6 million in the same period a year earlier. Sales volume fell 4% to 858 tonnes, and average selling price eased 2% to a373 per kilogram. Shares in Victrex dropped 7.04% after the update.
HgCapital Trust Plc posted a net asset value per share of 561.9p as of December 31, 2025, reflecting a 2.2% return for the fourth quarter. The investment trust's portfolio showed last twelve months revenue growth of 17% and EBITDA growth of 20% as of November 30, 2025, compared with 18% and 19% respectively at the end of September 2025. The portfolio's EBITDA margin stood at 34%, a slight improvement from the prior quarter.
Monetary policy and currency context
The Bank of England voted 5-4 to hold interest rates on Thursday, and officials adopted a more dovish tone. That shift in tone has led market participants to move expectations toward the possibility of a March rate cut, although the consensus view remains that any cut would likely arrive in the second quarter.
Markets are finding it difficult to fully price in two 25 basis point cuts for the year, with some of that uncertainty linked to political risks, including concerns over Prime Minister Keir Starmer's leadership. ING's commentary, cited in market discussion, expects the pound to face pressure, noting EUR/GBP support around 0.8670/80 and a bias toward 0.88 over the next month.
Overall, the trading session opened with a cautious tone as investors weighed large company charges, sector-specific strategic shifts, and a central bank stance that has become incrementally more dovish.