FTSE 100 Sees Modest Recovery as Defence Stocks Rally on U.S. Military Spending Signals
UK blue-chip index steadies amid sectoral gains driven by defence names after President Trump’s defence budget boost, but broader market pressure persists
London’s FTSE 100 index showed signs of recovery on Thursday as defence stocks rallied sharply, although broader market pressures kept gains modest.
Shares of major defence contractors such as BAE Systems led sectoral strength, rising significantly following renewed optimism over higher global military spending after remarks by U.S. President Donald Trump on boosting defence budgets.
Other defence-related names also advanced, reflecting strong investor interest in firms poised to benefit from heightened geopolitical spending in North America and Europe.
European defence equities more broadly hit record highs earlier in the session, underscoring sustained demand for aerospace and defence assets amid ongoing geopolitical uncertainties, including global tensions and recent U.S. military actions.
Despite these sectoral gains, the headline index was tempered by weakness in energy and retail stocks, which weighed on overall sentiment and capped broader upside for the FTSE 100.
Weak trading updates from key constituents and declines in major commodity-linked shares contributed to the market’s cautious tone, with the index still navigating mixed signals from corporate earnings and macroeconomic data.
As London’s markets adjust to divergent sectoral performances, investors continue to monitor the interplay between geopolitical drivers of defence spending and domestic economic indicators that influence broader equity market direction.
Shares of major defence contractors such as BAE Systems led sectoral strength, rising significantly following renewed optimism over higher global military spending after remarks by U.S. President Donald Trump on boosting defence budgets.
Other defence-related names also advanced, reflecting strong investor interest in firms poised to benefit from heightened geopolitical spending in North America and Europe.
European defence equities more broadly hit record highs earlier in the session, underscoring sustained demand for aerospace and defence assets amid ongoing geopolitical uncertainties, including global tensions and recent U.S. military actions.
Despite these sectoral gains, the headline index was tempered by weakness in energy and retail stocks, which weighed on overall sentiment and capped broader upside for the FTSE 100.
Weak trading updates from key constituents and declines in major commodity-linked shares contributed to the market’s cautious tone, with the index still navigating mixed signals from corporate earnings and macroeconomic data.
As London’s markets adjust to divergent sectoral performances, investors continue to monitor the interplay between geopolitical drivers of defence spending and domestic economic indicators that influence broader equity market direction.
