Key facts
- FTSE 100 rose 0.7% on Monday.
- Chancellor Healey to announce £20.4 billion for state-backed lenders.
- Defence spending to reach 3% of national income by 2030.
- European stocks closed higher on Monday, October 26, 2026.
The FTSE 100 index rose 0.7% on Monday, October 26, 2026, as investors anticipated the UK's autumn Budget. Chancellor John Healey is expected to announce an investment boost and modest tax rises, with £20.4 billion earmarked for state-backed lenders like the British Business Bank and National Wealth Fund. Prime Minister Andy Burnham indicated that defence spending will be prioritized, aiming for 3% of national income by 2030. Healey faces the challenge of reassuring investors about borrowing and public finances with long bond yields near 6%. Meanwhile, European stock exchanges also closed higher on Monday, buoyed by easing oil prices and Moody's decision to maintain France's investment grade rating.