Futures markets are not aligning with economist predictions for Bank of England rate changes in 2026, potentially leading to more rate cuts. Investors saw four unexpected cuts in 2025, and analysts anticipate further stimulus this year. Stock investors can expect a detailed analysis of 2025 performance and future strategies, including the best and worst-performing UK and European stocks. The GBP outlook is also discussed, following a year of dollar weakness impacting UK stocks. Despite challenges faced by the UK FTSE 100 in 2025, the index closed over 10,000 in early 2026. Rolls-Royce is highlighted as a strong performer, but shares may be overvalued with uncertainties ahead. Stay updated with the latest market coverage and stock updates on Morningstar’s Markets page.

Read more at Morningstar: Investor Insight: Bank of England Rate Cuts, FTSE 100 Winners, and Europe’s Best Stocks for Early 2026