London stocks edge higher as financials bounce back

Feb 16 (Reuters) - London's FTSE indexes edged higher on Monday, as financial stocks gained heading into a week packed with economic data that could give further clues on the central bank's future monetary policy path.

The internationally-focused FTSE 100 .FTSE edged up 0.41% to 10,488.79 points by 0925 GMT, while the domestically-focused FTSE 250 index .FTMC climbed 0.36% to 23,513.26 points.

British banks such as NatWest NWG.L and Barclays BARC.L added 4.3% and 2.7%, respectively, leading the gains on the blue-chip index, tracking a broader recovery in European financial stocks after last week's selloff.

UK lenders .FTNMX301010 had logged their biggest weekly fall since late-March 2025 on Friday, as jitters about artificial intelligence models disrupting traditional business swept through global markets.

Meanwhile, UK January consumer inflation and retail sales data and February's initial estimates on manufacturing activity will be in the spotlight as the week progresses.

Inflation is still not anywhere close to the Bank of England's 2% target, although investors are pricing in a 25-basis-point interest rate cut next month on signs that tight monetary conditions are weighing on the labour market and the broader economy.

Among other movers, SkinBioTherapeutics SBTX.L tumbled 41.4% after the British dermatology company said it was investigating its former CEO and believes he misrepresented material financial information to the board and auditors.

Auto service provider Pinewood's stock PINE.L tanked 28% and was at the bottom of the mid-cap index after private equity firm Apax Partners axed the $792 million deal that it announced in late January, citing challenging market conditions.

A broader decline in base and precious metals weighed on the materials sector .FTNMX551020, .FTNMX551030 that was among the top sectoral decliners.