FTSE 100 Rises Amid Data-Heavy Week; Pinewood Faces Sharp Decline

London's FTSE 100 closed higher on Monday as Pinewood saw a significant drop following Apax's bid withdrawal. Defence stocks surged after news of potential increased UK spending on defence. British banks showed signs of recovery, despite recent AI-driven market jitters. Reports on UK inflation and retail sales are anticipated this week.

In a promising start to a data-rich week, London's FTSE 100 closed higher on Monday, while Pinewood emerged as the biggest midcap loser after private equity firm Apax withdrew its bid. The benchmark FTSE 100 rose 0.26% to end at 10,473.69 points, despite challenges in other sectors.

Defence stocks led the way with a 2.5% jump following discussions at the Munich Security Conference that emphasized enhanced military cooperation in Europe. The UK government is contemplating increasing its defence spending to 3% of economic output, which buoyed investor confidence.

Although British banks like NatWest and Barclays recorded gains, Friday's market jitters over artificial intelligence models caused the sector's largest weekly dip since March 2025. Meanwhile, investors await crucial economic reports on UK January consumer inflation and February's initial manufacturing activity estimates.

(With inputs from agencies.)