20th Feb 2026 11:54
(Alliance News) - Stock prices in London were higher at midday on Friday, after news that activity growth in both the UK services and manufacturing sectors was stronger than expected in February.
The flash UK purchasing managers' composite output index rose to a 22-month high of 53.9 points in February from 53.7 in January, beating the FXStreet-cited market consensus of 53.4 points, preliminary survey results published by S&P Global showed.
The flash manufacturing index jumped to an 18-month high of 52.0 points in February from 51.8 in January, beating the consensus of another 51.8 reading. The flash services business activity index came down a notch to 53.9 from 54.0, beating the consensus of 53.6 points.
However, S&P Global Market Intelligence's Chris Williamson noted: "Despite enjoying higher demand for goods and services, companies remain focused on boosting productivity to cut costs, resulting in yet another month of steep job losses to prolong the continual jobs downturn that was initiated by the 2024 autumn budget...Bank of England policymakers will be encouraged by the indications of stronger economic growth, but the relatively modest price pressures being signalled and ongoing worrying labour market weakness will likely result in a growing call for further rate cuts."
The FTSE 100 index was up 68.17 points, 0.6%, at 10,695.21. The FTSE 250 was up 130.46 points, 0.6%, at 23,703.95, and the AIM all-share was up 3.23 points, 0.4%, at 814.37.
The Cboe UK 100 was up 0.8% at 1,065.85, the Cboe UK 250 was up 0.7% at 21,025.02, and the Cboe small companies was up 0.2% at 18,607.25.
On the FTSE 100, London-based engineering company Smiths Group rose 1.1%, after announcing a binding agreement to sell its Smiths Detection division to CVC Capital Partners in a deal valuing the business at GBP2.0 billion.
This enterprise value is equivalent to 16.3 times headline operating profit of GBP122 million and 12.5 times headline earnings before interest, tax, depreciation and amortisation of GBP160 million for the year ended July 31.
On the FTSE 250, Chemring led the laggers, down 3.3%.
The security and aerospace-focused manufacturing and technology firm said its financial 2026 outlook remains in line with its expectations. For the first quarter, however, order intake has decreased to GBP122 million from GBP393 million one year prior. Its order book at January 30 is GBP1.36 billion, up on-year from GBP1.35 billion.
"We have had a slightly slower than anticipated start to the year, primarily due to some operational disruption in countermeasures production, which is now largely resolved," Chemring noted.
On AIM, Pulsar Helium lost 13%.
The US and Greenland-focused helium company has raised gross proceeds of approximately GBP7.4 million through the issue of 9.2 million placing shares at 80p each. It said it will use the net proceeds to advance its flagship Topaz helium project in Minnesota, progress the Falcon Project in Michigan, and for general working capital.
Small-cap Tullow Oil lost 3.6%.
The oil and gas producer in Ghana and the Ivory Coast estimates that 2025 revenue will total USD847 million, down from USD1.54 billion the year before, although it highlighted its "strong operational momentum".
Production for the year averaged 40,400 barrels of oil equivalent per day. For 2026, Tullow said it expects working interest average production between 32,000 boepd and 34,000 boepd.
The company also reported free cash flow of USD100 million, down from USD156 million. For the current year, it anticipates free cash flow between USD150 million and USD180 million.
In European equities on Friday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was up 0.2%.
Germany's manufacturing activity solidly re-entered growth territory in February, however companies "remain very cautious in their personnel planning," flash data published by S&P Global showed.
The Hamburg Commercial Bank flash Germany composite purchasing managers' output index rose to 53.1 points in February from 52.1 in January, beating the FXStreet-cited consensus of a softer improvement to 52.2 points in February.
The flash manufacturing PMI surged to a 44-month high of 50.7 points in February from 49.1 points in January, beating the consensus of 49.6 points. The flash services PMI business activity index climbed to 53.4 points in February from 52.4 in January, beating the consensus of 52.2 points.
Eurozone manufacturing activity beat expectations in February, while service activity growth was lower than anticipated, flash purchasing managers' index survey results from S&P Global showed.
The flash eurozone composite PMI output index improved to 51.9 points in February from 51.3 in January, beating the FXStreet-cited consensus of a lesser increase to 51.5 points.
The flash eurozone services business activity index rose to 51.8 points in February from 51.6 in January, underperforming against the consensus of a bigger increase to 52.0 points. The flash manufacturing index jumped to a 44-month high of 50.8 points in February from 49.5 in January, beating the consensus of 50.0.
European Central Bank President Christine Lagarde said her "baseline" is that she will finish her term leading the eurozone institution, in an interview published on Friday.
The Financial Times, citing an anonymous source, reported this week that Lagarde would step down before her term ends in October 2027.
"When I look back at all these years, I think that we have accomplished a lot, that I have accomplished a lot," Lagarde told The Wall Street Journal. "We need to consolidate and make sure that this is really solid and reliable. So my baseline is that it will take until the end of my term." She declined to comment on the Financial Times report.
The pound was quoted at USD1.3470 at midday on Friday in London, higher compared to USD1.3455 at the equities close on Thursday. The euro stood lower at USD1.1760, against USD1.1768. Against the yen, the dollar was trading higher at JPY155.24 compared to JPY154.90.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index down 0.1%, and the Nasdaq Composite marginally higher.
The yield on the US 10-year Treasury was quoted at 4.07%, narrowing from 4.08%. The yield on the US 30-year Treasury was quoted at 4.70%, narrowing from 4.71%.
Brent oil was quoted lower at USD71.32 a barrel at midday in London on Friday from USD71.71 late on Thursday.
Gold was quoted higher at USD5,027.31 an ounce against USD5,003.14.
Still to come on Friday's economic calendar, there are several US releases including flash composite PMI, GDP and personal consumption expenditures.
By Emma Curzon, Alliance News reporter
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