London’s FTSE indexes rose Monday as investors looked ahead to the UK Budget and central-bank meetings, amid reports of a £20.4 billion government capital plan for two state-backed institutions.
The FTSE 100 closed at 10,767.33, up 76.97 points, or 0.72%. The FTSE 250 added 263.86 points, or 1.09%, to 24,501.25. Reuters reported that the mid-cap index had not posted a larger daily rise since Oct. 9.
UK Chancellor John Healey is due to present the Budget to Parliament Wednesday, Oct. 28. HM Revenue & Customs (HMRC) says the full announcements and supporting documents are due that day.
The Financial Times first reported the proposed capital increase. The Treasury confirmed the plan in comments reported by Reuters, which put the total at £20.4 billion over roughly five years: £15.4 billion for the National Wealth Fund and £5 billion for the British Business Bank. The Treasury said the funds could support about 100,000 jobs by 2035 in artificial intelligence, defense and green energy. That figure is a projection, not a confirmed job total. The Financial Times reported that the government planned to use borrowing and flexibility in its fiscal rules to finance the additions.
The Treasury describes the National Wealth Fund as an investor in capital-intensive projects that aims to draw in private investment. The proposed increase is due to be set out with the Budget details on Oct. 28.
Computacenter shares climbed 13.07% to 5,190 pence Monday, Sharecast reported, after the company said its third-quarter performance exceeded expectations. In an Oct. 26 trading update, Computacenter forecast 2026 adjusted pretax profit of at least £425 million, above its company-compiled analyst consensus of £387.1 million. Rolls-Royce Holdings rose 6.1% and BAE Systems gained 4.1% in a broader aerospace and defense rebound, Reuters reported.
Fidelity International investment director Tom Stevenson said, “The absence of leaks means the bond and currency market reactions on Wednesday will be important.” The Federal Reserve meets Oct. 27-28, the European Central Bank meets Oct. 28-29 and the Bank of Japan meets Oct. 29-30. The Office for Budget Responsibility is scheduled to publish its updated Economic and Fiscal Outlook after the Budget on Oct. 28; the Bank of England’s next rate decision is due Nov. 5.
