Stocks rally ahead of UK budget and rate calls. Published on 10/26/2026 at 01:06 pm EDT Alliance News (Alliance News) - Stocks in London started the week on the front foot, ending Monday in the green, as investors looked ahead to the Autumn Budget and a busy week of central bank interest rate calls. In London, the FTSE 100 index ended up 76.97 points, 0.7%, at 10,767.33. The FTSE 250 ended 263.86 points higher, 1.1%, at 24,501.25, and the AIM all-share advanced 6.51 points, 0.9%, at 753.18. The Cboe UK 100 ended up 0.9% at 1,068.90, the Cboe UK 250 closed 1.2% higher at 21,558.86, and the Cboe small companies fell 0.2% to 18,871.71. In London, investors are looking ahead to Wednesday's Autumn Budget at which Chancellor John Healey is expected to announce an investment boost, and modest tax rises, as he seeks to placate the City, and keep backbench MPs on side. "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," commented Tom Stevenson, investment director at Fidelity International. "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. The Financial Times reported that Healey is preparing to announce GBP20.4 billion in additional funding for the country's state-backed business lender and infrastructure bank. The funding, to be provided over roughly five years, is expected to create and support 100,000 jobs in sectors including artificial intelligence, defence and green energy by 2035, according to the Treasury. The National Wealth Fund will receive an additional GBP15.4 billion, allowing it to maintain its current lending rate until the 2030-31 financial year. This includes GBP2.0 billion for a renewables-focused Energy Wealth Fund. Meanwhile, the British Business Bank will receive GBP5.0 billion, increasing its financial capacity to GBP30.6 billion from GBP25.6 billion. According to the FT, the government plans to finance the additional investment through borrowing while taking advantage of flexibility in its fiscal rules. Deutsche Bank Chief UK Economist Sanjay Raja said the investment plans exceed expectations. "The investment surprise allows the chancellor to drive the narrative that this is ultimately a growth budget," he added. In European equity markets on Monday, the CAC 40 in Paris ended up 0.8%, while the DAX 40 in Frankfurt climbed 0.9%. In New York, markets were higher. The Dow Jones Industrial Average was up 0.3% at the time of the closing bell in London on Monday. The S&P 500 was 0.8% higher and the Nasdaq Composite added 1.0%. On Wall Street, Anthropic, one of the world's leading artificial intelligence companies, made public its plans to sell shares on the stock market, revealing soaring sales but also political and safety risks in a major test of whether the AI boom can deliver profits. Its filing warns investors of dangers ranging from its conflict with the Trump administration to AI systems acting on their own, alongside huge spending commitments on computing power. Anthropic's business has grown very quickly. Sales reached USD11.6 billion in the April-June quarter, up from USD787 million a year earlier. That compares with USD4.6 billion in sales for all of 2025. After early falls, the oil price strengthened once more. Brent was quoted at USD117.02 a barrel on Monday, up from USD116.34 at the same time on Friday. Against the dollar, the euro eased to USD1.1183 from USD1.1196. Against the yen, the dollar was trading at JPY157.53, up from JPY156.85. The yield on the US 10-year Treasury was quoted at 4.98%, narrowed from 5.00%. The yield on the US 30-year Treasury was quoted at 5.30%, down from 5.32%. The pound was quoted at USD1.3353, down from USD1.3376. Against the euro, sterling ebbed to EUR1.1940 from EUR1.1946. Along with the budget, the week sees interest rate decisions in the US, Europe and Japan, with all three central banks expected to leave interest rates on hold. In the US, JP Morgan's Michael Feroli expects the target range for the federal funds rate to remain unchanged at 3.75-4.0%. "We look for two hawkish dissents from Hammack and Logan, with a risk that Kashkari also dissents," he said. Feroli thinks that the post-meeting statement will say that policy will deliver a timely return to price stability. But he thinks the press conference could prove challenging if Chair Kevin Warsh insists on providing little colour on the FOMC's plan to deliver on that vow. "Ideally, he will reiterate the message from his deputies that the Committee is biased to hike but wants to take a little more time to observe the impact of the last hike on the economy," Feroli added. On the FTSE 100, Computacenter soared 13% as it said it performed better than expected in the third quarter, and it now forecasts annual profit ahead of consensus. The Hatfield, England-based technology services provider expects adjusted pretax profit of at least GBP425 million for 2026, ahead of company-compiled consensus of GBP387.1 million. Aerospace and defence firms were lifted by reports of increased spending on defence in the budget. Prime Minister Andy Burnham said the budget will set out a path for defence spending to hit 3% of national income by 2030, and that national security was "at the top of the priority list." But asked whether he would set out how to reach the target on Wednesday, Burnham told ITV's Good Morning Britain: "[Healey] will set out on Wednesday the path to meet out Nato commitments." Rolls Royce, Babcock International, BAE Systems and Melrose Industries advanced 6.1%, 6.4%, 4.1% and 3.5% respectively. TEK4 shares soared as the engineering company made its AIM debut. The Leicestershire-based company manufactures specialist machinery used to drill cooling holes in jet engine and industrial gas turbine components. Shares in the firm listed at 200 pence per share, giving it a GBP42.0 million market capitalisation on admission. It raised GBP24.8 million as part of the listing, with TEK4 noting GBP22.8 million "for the benefit of" selling shareholders and GBP2.0 million stemming from the issue of new shares in the firm to institutional investors. By the close of play on Monday, TEK4 shares traded at 299.00p, up nearly 50% from the IPO price. Gold was quoted at USD4,017.92 an ounce, up from USD3,996.30. The biggest risers on the FTSE 100 were Computacenter, up 600.00p at 5,190.00p, Babcock International Group, up 60.00p at 999.20p, Rolls Royce Holdings, up 70.60p at 1,234.80p, International Consolidated Airlines Group, up 16.70p at 411.40p and BAE Systems, up 80.00p at 2,012.00p. The biggest fallers on the FTSE 100 were Experian, down 208.00p at 2,900.00p, Autotrader Group, down 14.20p at 528.00p, Sage Group, down 29.50p at 1,157.50p, London Stock Exchange Group, down 170.00p at 9,3400.00p and SSE, down 37.00p at 2,485.00p. Tuesday's local corporate calendar has third quarter results from Asia-focused bank HSBC, and a trading statement from consumer goods firm Reckitt Benckiser. Tuesday's global economic calendar sees the start of the Federal Reserve meeting, US durable goods orders data, Conference Board consumer confidence report and building permits and house price figures. By Jeremy Cutler, Alliance News reporter (C) Alliance News - 2026

Stocks rise as Computacenter leads gains. Published on 10/26/2026 at 05:08 am EDT Alliance News (Alliance News) - Stock prices in London opened higher on Monday, with gains for mining stocks helping lift the FTSE 100, as investors looked ahead to the UK government's budget on Wednesday. The FTSE 100 index opened up 48.28 points, 0.5%, at 10,738.64. The FTSE 250 was up 141.59 points, 0.6%, at 24,378.98, and the AIM All-Share was up 6.27 points, 0.8%, at 752.94. The Cboe UK 100 was up 0.6% at 1,065.84, the Cboe UK 250 was up 0.8% at 21,475.87, but the Cboe Small Companies was down 0.2% at 18,869.42. In European equities on Monday, the CAC 40 in Paris was up 0.7%, while the DAX 40 in Frankfurt gained 0.6%. In the UK, Prime Minister Andy Burnham has called for an "honest discussion" about restoring freedom of movement between Britain and the European Union as part of a broader reassessment of the country's relationship with the bloc. Speaking to the Sunday Times, Burnham said he wanted an evidence-based debate on options including rejoining the EU or entering the single market, both of which would require the restoration of free movement. He suggested that migration patterns during Britain's EU membership differed from those seen today, with many European workers moving to the UK temporarily before returning to their home countries. However, Burnham said he could not envisage recommending that Britain adopt the euro or join the Schengen border-free travel area. The prime minister is due to meet EU leaders at a summit in Brussels on November 20, where he plans to outline possible arrangements for the UK's future relationship with the bloc. Meanwhile, Chancellor John Healey is preparing to announce GBP20.4 billion in additional funding for the National Wealth Fund and British Business Bank in Wednesday's budget, the Financial Times reported. The pound was quoted at USD1.3347 early Monday, lower than USD1.3376 at the London equities close on Friday. Against the euro, sterling fell to EUR1.1906 from EUR1.1946. The euro rose to USD1.1206 early Monday from USD1.1196 late Friday. Against the yen, the dollar edged up to JPY156.88 from JPY156.85. ING analyst Chris Turner commented: "Separately, OAT-Bund spreads have narrowed this morning after Moody's maintained France's Aa3 rating on Friday. This means France retains at least one AA rating. While welcome news in the short term, we will need to see concrete and material progress on the French budget over the coming months to take pressure off the euro. That seems unlikely, and high energy prices are hardly helping." In the FTSE 100, Computacenter was the standout performer, jumping 6.1% after raising its full-year profit outlook following stronger-than-expected third-quarter trading. The technology and services provider now expects adjusted pretax profit of at least GBP425 million for 2026, ahead of company-compiled analyst consensus of GBP387.1 million. Computacenter said strong demand from hyperscale and neocloud customers in North America and the UK had supported its performance during the quarter ended September 30. Technology Sourcing revenue continued to grow strongly, while Services revenue increased year-on-year as growth in Professional Services more than offset a decline in Managed Services. North America maintained strong momentum, with record project completions benefiting both Technology Sourcing and Professional Services. The UK delivered excellent growth in Technology Sourcing and solid growth in Professional Services, while Germany reported a robust underlying performance, supported by strong Technology Sourcing growth and stable Professional Services revenue. The group's committed product order backlog reached a record GBP12.6 billion at the end of September, up from GBP9.3 billion at the end of June. Computacenter said it had made a strong start to the fourth quarter and continued to see a strong pipeline of opportunities in North America and the UK. Mining stocks also advanced, with Antofagasta rising 2.9% and Fresnillo gaining 2.5%. Gold was quoted at USD4,019.00 an ounce early Monday, higher than USD3,996.30 on Friday. At the other end of the blue-chip index, Experian fell 1.6%. In the FTSE 250, Molten Ventures climbed 5.3% after reporting an increase in net asset value per share, supported by strong portfolio performance. The venture capital investment company said its net asset value per share stood at approximately 869 pence at September 30, up from 724p a year earlier. Plus500 gained 4.0% after the trading platform operator said it expects full-year 2026 revenue and earnings before interest, tax, depreciation and amortisation to exceed current market forecasts, following strong third-quarter trading and continued expansion in the US and Brazil. Third-quarter revenue rose 11% to USD203.2 million from USD182.7 million a year earlier, while Ebitda increased 7.0% to USD88.4 million from USD82.7 million, representing a margin of 44%. Man Group advanced 3.4% after expanding its strategic partnership with Japan's Meiji Yasuda Life Insurance. The Japanese insurer intends to increase its capital commitment to Man Group's investment strategies to JPY200 billion, some USD1.25 billion, over the next three years, with a focus on private credit. Among smaller companies, Catenai surged 22% after announcing that Sure Valley Ventures had become a paying customer of its investee company Alludium. In Asia on Monday, the Nikkei 225 index in Tokyo closed down 0.1%. In China, the Shanghai Composite ended 0.2% higher, while the Hang Seng index in Hong Kong gained 0.5%. The S&P/ASX 200 in Sydney closed up 0.2%. In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average falling 1.2%, the S&P 500 declining 0.5% and the Nasdaq Composite losing 0.2%. The yield on the US 10-year Treasury was quoted at 4.99% early Monday, narrowing from 5.02% on Friday. The yield on the US 30-year Treasury narrowed to 5.31% from 5.33%. Brent oil was trading at USD114.25 a barrel early Monday, lower than USD116.34 late Friday. Still to come on Monday's economic calendar, Germany releases its latest ifo business climate index. In addition to the UK budget, this week has rate decisions from the European Central Bank and the US Federal Reserve. Analysts at Lloyds Bank commented: "The Fed (Wed) and ECB (Thu) are both expected to leave rates unchanged, shifting attention to the accompanying guidance. For the Fed, that comes alongside a substantial run of data, including Q3 GDP and September core PCE inflation, which should help clarify whether recent resilience in activity is being matched by slower progress on inflation. In the Eurozone, GDP and October inflation releases arrive either side of the ECB meeting and will shape the debate around the pace of any future easing." By Eva Castanedo, Alliance News senior economics reporter (C) Alliance News - 2026