London’s FTSE 100 appeared poised to record its first monthly increase in three months, advancing on Friday as AstraZeneca experienced a rise, with investors reacting positively to a budget that was less stringent than anticipated regarding taxes.
The blue-chip FTSE 100 index was 0.1% higher at 10,732.58 points by 0941, contributing to the month’s gains of 1.3%. The midcap FTSE 250 slipped 0.6%.
- On the day, AstraZeneca opened new tab rose 3.6%, after the Anglo-Swedish drug-maker announced a restructuring drive that will likely save $1.5 billion and help achieve long-term ambitions, including investing in new drug pipelines.
- The broader pharma sector, opens new tab gained 3%, setting it up for its biggest monthly gain since February.
- Banks weighed most on the index on the day, after NatWest lost 7.9% following disappointing third-quarter profit.
- Precious metal miners experienced a decline of 3.4%, while industrial metal miners saw a decrease of 1.3%, reflecting the downward trends in gold and copper prices.
- Oil prices experienced an increase of approximately 2% on Friday, positioning themselves for a fourth consecutive monthly gain, as Brent crude futures were trading above $117 per barrel.
- Energy rose 0.2%. BP was up marginally after it posted a record quarterly net profit.
- Finance Minister John Healey’s first budget raised taxes on banks and gambling firms, which were less severe than expected, sparking a rally in the stocks on Wednesday.
- Defence firms experienced a surge following Healey’s statement regarding ‘reprioritisation’ in other departments, which would finance the government’s defence strategy. Aerospace and defence firms are among the top performers this week.
- Consumer staples stocks experienced an uptick, with British American Tobacco and Unilever both increasing by approximately 2%.
- Earlier this month, data indicated that inflation increased more than anticipated in September, reinforcing the argument for an interest rate hike by the Bank of England in November.
