FTSE 100 rises as investors shift to defensive stocks

London’s blue‑chip FTSE 100 climbed 0.77% to 10,732.13 on Monday as investors rotated into defensive sectors such as healthcare and consumer staples. The mid‑cap FTSE 250 slipped 0.28% to 23,908.74, earlier touching its lowest intraday level in more than a month.

Oil prices rose about 3% after fresh strikes on Saudi Arabian infrastructure and disruptions to Gulf shipping. The increase supported energy stocks: Shell gained roughly 1.2% and BP about 1.5%, while the broader energy sector was up about 1.1%.

UK government bond yields moved higher on Monday, reaching new multi‑year highs across several maturities. Higher yields can raise borrowing costs and influence demand for equities, a factor cited by market participants as they adjusted sector exposure.

Investors favoured pharmaceutical and consumer‑facing companies. Pharmaceutical stocks rose 2.7%, led by GSK, which jumped 4.6% after announcing positive trial results for two lung cancer drugs, Jideytro and Ris‑Rez. Personal care, drug and grocery stocks increased about 2.6%, and beverage companies added about 2.8%.

By contrast, industrials and precious metal miners were among the weakest sectors as metal prices fell. Technology returns were mixed: futures tied to the Nasdaq Composite fell 1.6% after executives at several artificial intelligence laboratories, including OpenAI and Anthropic, called for a slower pace of development, while the FTSE 350 technology sector rose 3.9% on Monday.

Market participants were positioning ahead of a busy week for central banks and economic data. UK employment and inflation reports are due ahead of the Bank of England’s policy decision, where markets broadly expect rates to be unchanged. The US Federal Reserve is scheduled to announce its decision on Wednesday, with the CME FedWatch Tool pricing an 88.5% chance of a 25 basis‑point hike.

Domestically, Greater Manchester Mayor Andy Burnham met business leaders, entrepreneurs and local mayors at Downing Street to discuss government plans for economic growth. Attendees included executives from banks, energy companies, retailers, telecoms and industrial firms. The meeting took place before Chancellor John Healey’s budget on Oct. 28 as the government manages higher borrowing costs and fallout from the conflict in Iran.

On the FTSE 250, GlobalData fell about 21% after the data analytics and consulting group warned that annual revenue growth would be more muted than previously expected.