FTSE 100 Edges Up After NatWest Results, FTSE 250 Drops as Investors Remain Cautious

The FTSE 100 inched 0.2% higher on Friday as stronger-than-expected results from NatWest Group helped lift sentiment, even as broader market caution persisted.

The blue chip index remains below yesterday's intraday high. The FTSE 250 is lagging, falling 0.9% after failing again to break above resistance near 23,580, signalling hesitancy among mid-cap investors.

Across Europe, major indexes were softer, with the DAX slipping 0.1% and the CAC 40 down 0.3%, reflecting a more muted tone heading into the weekend.

NatWest shares traded firmly higher after the bank delivered a robust 2025 performance summary. Operating profit before tax rose to £7.71 billion, ahead of market expectations of £7.49 billion.

Fourth-quarter profit before tax also exceeded forecasts, coming in at £1.94 billion versus £1.72 billion expected. The numbers reinforced confidence in the lender’s earnings resilience despite a more challenging economic backdrop.

In the FTSE 100, RELX led the risers with a gain of 4.4%, followed by Rolls-Royce, up 3.3%, and 3i Group, which advanced 2.4%. Burberry was the biggest faller, down 2.1%, while Barratt Redrow slipped and British Land both declined 2%.

In the FTSE 250, Morgan Sindall was the strongest performer, gaining 2.8%. Baillie Gifford Japan Trust was the weakest, dropping 2.3% as investors continued to rotate cautiously across the index.

Meanwhile, British Retail Consortium (BRC) figures reportedly revealed that shopper footfall rose in January following disappointing Christmas numbers. Shopper visits in the UK declined by 0.6% compared with last January, an improvement on the 2.9% decline seen in December.