BAE, St James’s Place and IAG rise as FTSE stalls

London — Shares in BAE Systems, St James’s Place and IAG climbed on Monday while the FTSE 100 traded in a narrow range at its highest level since March.

IAG rose after American buyout firm Castlelake agreed to acquire EasyJet. Investors cited the takeover as a catalyst for renewed interest in the airline sector. Declining jet fuel costs supported the stock: Brent and WTI benchmarks are down more than 40% from their peaks, and industry data show jet fuel about 7.8% lower than a month ago. IAG has recovered roughly 45% from this year’s low. Market participants will watch airline results this week, including Delta Air Lines, for further signals on demand and margins.

BAE Systems has recovered from a year-to-date low of 1,582p to about 2,021p after forming a double-bottom technical pattern. The defence group gained on expectations of higher military spending ahead of a NATO meeting where the US is expected to press allies on defence budgets. Reports that Italy plans to raise defence spending and Germany’s decision to increase borrowing above €200 billion this year were cited as potential sources of extra defence funding. Regional activity included Thales announcing a 35.5% stake in Exail Technologies with the stated aim of acquiring the remainder to strengthen underwater systems and inertial navigation capabilities.

St James’s Place rose for a fifth consecutive day to its highest level since February after the wealth manager said it will expand its wealth solutions offerings in Asia and the Middle East. UBS raised its target for the stock, citing expected market share gains. Technical traders noted a falling wedge pattern preceded the recent rally.

The gains in these names came while the broader market remained cautious. Other London-listed companies that fell earlier in the year on concerns about artificial intelligence have recovered ground: RELX is more than 20% up from its year-to-date low and the London Stock Exchange is about 22% higher.

Investors are looking to upcoming corporate results, fuel-price trends and policy signals from European governments and NATO for further direction on whether sector-specific rallies will extend across the market.