The FTSE 100 experienced an upward movement on Monday, driven by a decline in oil prices that enhanced risk appetite. This development marks the beginning of a week characterised by John Healey’s inaugural budget as finance minister and the upcoming policy meeting of the US Federal Reserve.
The blue-chip FTSE 100 index rose 0.4% to 10,736.81 points by 1118, while the midcap FTSE 250 rebounded 1%, set for its biggest one-day jump since October 9.
- Oil prices declined by more than 1%, yet remained near six-month peaks, fuelled by optimism regarding a potential de-escalation of tensions between the US and Iran. Brent crude futures were priced above $114 per barrel.
- Energy stocks fell 1.8%, pulling back from Friday’s record high, with Shell down 1.7% and BP down 2% respectively.
- Most sectors in the market staged a recovery, with banks up 1.4%, set for their biggest one-day jump since October 12, while investment banking and broking stocks rose 1.9%.
- Aerospace and defence stocks gained 2.5%, with Rolls-Royce up 2.3%. The jet engine manufacturer experienced its most significant daily decline since April 2025 on Friday, following a cautionary statement from French competitor Safran regarding a deceleration in aftermarket sales growth.
- Attention will be focused on finance minister John Healey’s inaugural budget announcement this week, with anticipations that it will emphasise bond market stability and provide new guidance on the government’s fiscal strategy.
- The Federal Reserve’s monetary policy meeting on Wednesday will be scrutinised for indications regarding the central bank’s interest rate trajectory. It is anticipated that rates will be maintained at this meeting.
- Recent data indicated that UK inflation increased beyond projections, reinforcing the argument for a potential interest rate increase by the Bank of England in November.
- Corporate earnings will also be examined to assess how companies are navigating the uncertain geopolitical landscape and fluctuating interest rates.
- Computacenter opens new tab rose 10%, leading FTSE 100 gainers after the technology services provider raised its fiscal 2026 adjusted pre-tax profit forecast.
- 3i Group opens new tab rose 2.8% after the private equity group’s portfolio company Future Biogas agreed to acquire the remaining 49% stake in six UK anaerobic digestion plants for £104 million ($138.91 million).
