26th Oct 2026 12:06
(Alliance News) - Stock prices in London were higher at midday on Monday, with gains led by technology and defence stocks, while oil majors kept a lid on the FTSE 100's progress as crude prices retreated.
The FTSE 100 index was up 48.57 points, 0.5%, at 10,738.93. The FTSE 250 surged 252.12 points, 1.0%, at 24,489.51, and the AIM all-share was up 6.48 points, 0.9%, at 753.15.
The Cboe UK 100 was up 0.6% at 1,065.75, the Cboe UK 250 was up 1.3% at 21,585.58, and the Cboe small companies was down 0.2% at 18,879.99.
In European equities on Monday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was up 0.9%.
"The FTSE 100 made a solid start to budget week as oil prices eased back and despite weak trading across Asia," AJ Bell analyst Russ Mould commented.
John Healey's budget will set out a path for defence spending to hit 3% of national income by 2030, UK Prime Minister Andy Burnham said. The prime minister said national security was "at the top of the priority list" ahead of the autumn statement on Wednesday.
But asked whether he would set out how to reach the target on Wednesday, Burnham told ITV's Good Morning Britain: "He will set out on Wednesday the path to meet out Nato commitments.
"But we will meet out Nato commitments."
Asked if that would include 3% of GDP by 2030 as well as 3.5% by 2035, the prime minister said: "It is, and we will set out a plan as to how we think is the right way to do that."
Babcock International shares rose 4.5%, while BAE Systems added 2.2% as defence stocks climbed.
Burnham said he would not restore freedom of movement with the European Union without a referendum, following his weekend call for an "honest discussion" about Britain's relationship with the bloc.
Burnham insisted he would "never move ahead of the British public when it comes to Brexit", as he sought to clarify his position ahead of a UK-EU summit in November.
The prime minister argued that the UK had lost some immigration controls since leaving the EU, including arrangements for returning migrants to other European countries.
He said the government would seek a more practical relationship with Brussels, including closer cooperation on immigration and measures to support British farmers and food manufacturers.
"I want to use that opportunity to get a practical deal in place to support our farmers, our food manufacturers, but also to increase collaboration on immigration because we lost that and we need to get it back," Burnham said.
Sterling was quoted lower against the dollar at midday on Monday, fading to USD1.3349 from USD1.3376 at the London equities close on Friday. Against the euro, sterling fell to EUR1.1917 from EUR1.1946.
The euro was steady at USD1.1197 from USD1.1196 late Friday. Against the yen, the dollar rose to JPY157.38 from JPY156.85.
The Federal Reserve announces a rate decision on Wednesday. The European Central Bank follows on Thursday. Both are expected to leave rates unmoved.
On the FTSE 100, Computacenter jumped 8.3% after upgrading its annual profit guidance following what it described as an "excellent" third quarter.
The technology services provider now expects full-year adjusted pretax profit of at least GBP425 million, comfortably ahead of company-compiled consensus of GBP387.1 million.
Computacenter also reported a strong start to the fourth quarter.
Among the FTSE 100 fallers, BP declined 1.9% and Shell shed 1.1%, tracking a retreat in crude oil prices.
Brent oil was quoted at USD114.91 a barrel at midday in London on Monday, down from USD116.34 late Friday.
On the FTSE 250, Molten Ventures climbed 5.3% after forecasting an increase in its net asset value and investment portfolio valuation.
The venture capital investor expects net asset value per share to rise 14% to approximately 869 pence at September 30 from 760p at March 31.
Gross portfolio value is expected to increase 11% to around GBP1.70 billion from GBP1.53 billion over the same period.
Man Group advanced 4.6% after expanding its strategic partnership with Japan's Meiji Yasuda Insurance Co.
Under the agreement, Meiji Yasuda plans to increase its capital commitment to Man Group's investment strategies to JPY200 billion, approximately USD1.25 billion, over the next three years.
The investment will focus on Man Group's private credit capabilities, while the companies will also jointly develop investment products and deepen their research collaboration through the Oxford-Man Institute.
Elsewhere in London, Pensana surged 33% after reporting progress in discussions with major shareholders, including Cascade, over a proposed equity financing of between USD75 million and USD90 million for its Longonjo rare earths mine in Angola.
BSF Enterprise rose 16% after its Lab-Grown Leather subsidiary entered into partner-funded commercial evaluation programmes with two major global luxury fashion houses for its cultivated animal leather product, Elemental Lux.
Catenai gained 22% after announcing that investee company Alludium had secured Sure Valley Ventures as a paying customer for its artificial intelligence-powered platform designed for venture capital firms.
Meanwhile, Safestay plunged 29% after warning that year-to-date trading remained below board expectations following a weaker-than-anticipated summer.
The hostel operator said recent trading had improved but warned of continued liquidity pressures during the quieter winter months.
It is exploring further property disposals and reviewing its financing arrangements to strengthen its financial position.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.4%, the S&P 500 index up 0.1%, and the Nasdaq Composite marginally higher.
Meta shares rose 2.6% to USD659.40 in New York during premarket trading on Monday after announcing plans to fund its AI expansion with a share offering of up to USD95 billion.
The Menlo Park, California-based owner of Facebook, Instagram and WhatsApp unveiled plans to raise approximately USD35 billion through concurrent share offerings, alongside a potential USD60 billion future stock sale programme.
The yield on the US 10-year Treasury narrowed to 5.00% from 5.02% on Friday, while the yield on the US 30-year Treasury eased to 5.31% from 5.33%.
Gold was quoted at USD4,011.90 an ounce, higher than USD3,996.30 on Friday.
Elsewhere in Europe, German business confidence improved slightly in October as expectations brightened, although companies became less satisfied with their current operating conditions.
The ifo business climate index rose to 90.2 points in October from 89.9 in September, above the FXStreet-cited consensus forecast of 89.9 points.
The expectations index climbed to 91.6 points from 90.4, while the current conditions index declined to 88.8 from 89.5.
"The economic recovery is continuing," the Munich-based ifo Institute said.
By Eva Castanedo, Alliance News senior economics reporter
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