FTSE climbs as investors await John Healey’s autumn Budget
The FTSE 100 gained 0.7% and the FTSE 250 rose 1.1% ahead of Wednesday’s Budget, where Chancellor John Healey is expected to announce a £20.4 billion funding package.
By Felo News Desk · Published
London’s equity markets opened the week in positive territory, with the FTSE 100 up 76.97 points (0.7%) to 10,767.33 and the FTSE 250 climbing 263.86 points (1.1%) to 24,501.25 on Monday, according to both the Standard and the Independent.
What happened
The gains came as investors looked ahead to a busy week of central‑bank interest‑rate announcements and the UK’s autumn Budget, scheduled for Wednesday. The AIM all‑share index also rose, adding 6.51 points (0.9%) to 753.18.
What the reports add
Both outlets reported that the Financial Times said Chancellor John Healey is preparing to unveil £20.4 billion of additional funding for the state‑backed business lender and infrastructure bank, a package expected to be spread over roughly five years. The National Wealth Fund will receive an extra £15.4 billion, including a £2.0 billion allocation for a renewables‑focused Energy Wealth Fund, while the British Business Bank will get £5.0 billion, raising its capacity to £30.6 billion.
The funding is projected to support up to 100,000 jobs in sectors such as artificial intelligence, defence and green energy by 2035, according to the Treasury.
Deutsche Bank chief UK economist Sanjay Raja said the investment plans exceed expectations, adding, “The investment surprise allows the Chancellor to drive the narrative that this is ultimately a growth budget.”
European markets also rose on Monday: the CAC 40 in Paris gained 0.8% and the DAX 40 in Frankfurt climbed 0.9%.
In New York, the Dow Jones Industrial Average was up 0.3%, the S&P 500 rose 0.8% and the Nasdaq Composite added 1.0%.
Wall Street coverage noted that Anthropic, a leading artificial‑intelligence firm, announced plans to float shares, reporting sales of $11.6 billion in the April‑June quarter, up from $787 million a year earlier.
What was said
“Wednesday’s Budget will be the main event for UK investors, with the reaction in bond and currency markets likely to matter more than the individual measures announced,” said Tom Stevenson, investment director at Fidelity International, as quoted by the Standard.
“With long bond yields in the UK approaching 6%, the most important job for the Chancellor, John Healey, will be to reassure investors about the outlook for borrowing, growth and the public finances,” he added.
How it came about
Earlier this month, Felo News reported on the FTSE’s reaction to US jobs data (London stocks rise after soft US jobs data). The current rally follows a period of heightened market sensitivity after recent UK inflation data that pushed expectations of a November Bank of England rate hike (UK inflation hits 11‑month high).
Key facts
- FTSE 100 closed at 10,767.33, up 0.7% (standard.co.uk)
- FTSE 250 closed at 24,501.25, up 1.1% (standard.co.uk)
- Chancellor John Healey is expected to announce £20.4 billion of funding (standard.co.uk)
- Tom Stevenson of Fidelity International said the Budget will dominate investor focus (standard.co.uk)
Sources
- [1] standard.co.uk
- [2] independent.co.uk
