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FTSE 100 rises as falling oil prices boost risk appetite

By Reuters News

Oct 26 (Reuters) - The FTSE 100 climbed on Monday as a pullback in oil prices boosted risk appetite, starting a week headlined by John Healey's first budget as finance minister and the US Federal Reserve's policy meeting.

The blue-chip FTSE 100 index .FTSE rose 0.4% to 10,736.81 points by 1118 GMT, while the midcap FTSE 250 .FTMC rebounded 1%, set for its biggest one-day jump since October 9.

  • Oil prices retreated over 1%, but stayed close to six-month highs, amid hopes of easing hostilities between the US and Iran. Brent crude futures traded at over $114 a barrel

  • Energy stocks .FTNMX601010 fell 1.8%, pulling back from Friday's record high, with Shell SHEL.L and BP BP.L down 1.7% and 2% respectively

  • Most sectors in the market staged a recovery, with banks .FTNMX301010 up 1.4%, set for their biggest one-day jump since October 12, while investment banking and brokerage stocks .FTNMX302020 rose 1.9%

  • Aerospace and defence stocks .FTNMX502010 gained 2.5%, with Rolls-Royce RR.L up 2.3%. The jet engine maker had marked its sharpest daily fall since April 2025 on Friday, after French rival Safran warned of slowing aftermarket sales growth

  • Attention will squarely be on finance minister John Healey's first budget announcement this week, with expectations that it will prioritise bond market stability and offer fresh direction on the government's fiscal strategy

  • The Federal Reserve's monetary policy meeting on Wednesday will also be watched for clues on the central bank's interest rate trajectory. It is expected to hold rates at this meeting

  • Data last week showed UK inflation rose more than expected, cementing the case for an interest rate hike from the Bank of England in November

  • Corporate earnings will also be scrutinized to see how companies are faring in the uncertain geopolitical and interest rate environment

  • Computacenter CCC.L rose 10%, leading FTSE 100 gainers after the technology services provider raised its fiscal 2026 adjusted pre-tax profit forecast

  • 3i Group III.L 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)



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